Honor Unveils $10 Billion Investment in AI-Powered Devices
Honor Unveils $10 Billion Investment in AI-Powered Devices
Chinese smartphone maker Honor announced that it is set to invest $10 billion over the next five years to develop AI technologies for its devices. The investment plan comes as part of the company’s preparation to go public.
The Shenzhen-based company’s CEO, James Li, unveiled the plan at the Mobile World Congress (MWC) trade show in Barcelona.
Expanding Beyond Smartphones
Honor is shifting its focus from just smartphones to a broader range of AI-powered devices.
With this change, the company plans to develop PCs, tablets, and wearables while placing AI at the center of its strategy. The goal is to make these devices smarter and more intuitive, improving user experience and maintaining market competition.
Also read: Thomson Reuters Plans $8 Billion AI Investment Push
Investment Boosted by AI Boom
The announcement also comes at a time when AI investments are booming across China. Startups like DeepSeek have sparked the interest in AI technologies. Various organisations and businesses are eager to implement and integrate the latest AI technology. The investment from Honor represents a move in that space. It shows that the company is committed to secure a spot at the forefront of the AI revolution.
Despite the Chinese smartphone maker's grandiose plans, it witnessed a decline in its market position in 2024. As per IDC, the company went down from 2nd to 4th place in the country smartphone market.
But, Honor is garnering strong support from the Shenzhen local government. The support includes funding, tax breaks and help to expand internationally. This assistance from local authorities helps Honor to regain its market share and innovate in the AI technology space.
