Honor Device Co., a leading Chinese smartphone manufacturer, has committed to investing $10 billion over the next five years in artificial intelligence (AI) research and development. This significant investment aims to position Honor as a major player in the rapidly evolving AI landscape.
The Shenzhen-based company, formerly a subsidiary of Huawei Technologies Co., unveiled its new AI-centric corporate strategy at Mobile World Congress in Barcelona. The substantial investment will be funded by Honor and its investors, including local government entities, display maker BOE Technology Group Co., and two major Chinese mobile carriers. While specific allocation details weren’t disclosed, a company representative confirmed the funding commitment.
Honor’s newly appointed CEO, James Li, presented the ambitious plan alongside representatives from key partners Qualcomm Inc. and Google. The strategy emphasizes building a device-centric AI ecosystem and collaborating with global supply chain partners and carriers such as Orange and Telefonica. This collaborative approach aims to establish “a new paradigm for AI devices in the agentic AI era,” according to Li.
This strategic move places Honor amidst a global surge in AI investment, particularly prominent in China following the successful launch of DeepSeek’s advanced reasoning chatbot. Major Chinese tech companies like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. are rapidly enhancing their AI capabilities and benchmarking against DeepSeek’s groundbreaking software. Honor seeks to differentiate itself by focusing on the device as the foundation for its AI advancements.
Furthermore, Honor’s strategy distinguishes itself through close collaboration with US-based technology companies. The company is partnering with Google Cloud to develop its AI agent and deeply integrating Google’s Gemini into its phone software. Reinforcing its commitment to partnerships, Honor also introduced the MagicBook Pro 14, a Windows-powered AI PC, at MWC, further solidifying its collaboration with Microsoft Corp.
Despite the current enthusiasm for AI, questions remain regarding the monetization potential of these emerging technologies. Many companies, including Samsung Electronics Co. and Apple Inc. with its Apple Intelligence on the iPhone 16, are banking on AI to drive hardware upgrades. Honor’s success will depend on its ability to compete not only with these established players but also with the increasingly competitive domestic market in China. The company’s substantial investment and strategic partnerships suggest a strong commitment to securing a prominent position in the future of AI.
