Honor's Bold $10 Billion AI Vision Ahead of IPO

Chinese smartphone maker Honor is investing $10 billion over five years to develop AI technology, preparing for a public listing. The firm aims to evolve beyond smartphones, creating AI-powered PCs, tablets, and wearables. This move aligns with a surge in Chinese AI investments.

Chinese smartphone manufacturer Honor is embarking on a bold $10 billion investment plan over the next five years to develop artificial intelligence for its range of devices. This strategic move comes as the company, formerly a unit of Huawei, gears up for a public listing, detailed by CEO James Li at the Mobile World Congress in Barcelona.

With a focus on not just remaining a smartphone entity, Honor intends to branch out into AI-driven personal computers, tablets, and wearable technology. This shift coincides with an uptick in Chinese AI investments, fueled by strong interest in DeepSeek's cost-effective large language models, attracting diverse sectors from local governments to consumer electronics firms.

The firm faced challenges last year, dropping from second to fourth in China smartphone shipments due to stiff competition from Huawei and Vivo, according to IDC data. However, Honor gains significant backing from Shenzhen's local government, receiving research and development funds, tax incentives, and aid for international expansion, as reported by Reuters in August.

(With inputs from agencies.)