Chinese smartphone maker Honor has announced plans to invest $10bn (72.8bn yuan) over the next five years in AI development for its devices, as the company positions itself for a future public listing.
Speaking at the Mobile World Congress (MWC) in Barcelona, Spain, CEO James Li outlined Honor’s vision to expand beyond smartphones, aiming to build an AI-powered ecosystem that includes personal computers, tablets, and wearable devices, Reuters reported.
Li said: “We aim to develop a system of AI-powered PCs, tablets, and wearables.”
Li added. “In the end, we will open human potential boundaries, and co-create a new paradigm for civilisation in the AGI era. You will witness the co-existence between carbon-based life and silicon-based intelligence. This is why all of us need to work together to maximise human potential to embrace an intelligent world."
Industry partners announced a collaborative effort to develop an AI device ecosystem for consumers worldwide.
Representatives from Google Cloud, Qualcomm Technologies, CKH Group, and Vodafone joined Li on stage to showcase this collaboration.
The Shenzhen-based company’s decision follows a shareholder restructuring in December 2024, which marked a step towards an initial public offering. However, no specific timeline for the listing has been disclosed.
Honor's announcement comes amid intensified competition in the Chinese smartphone market.
In 2024, Honor’s share of China’s smartphone market declined, dropping from second to fourth place with a 14.9% market share, according to consultancy IDC. The company faced intensified competition from its former parent firm Huawei, as well as from rising domestic rival Vivo.
Honor has reportedly received from the Shenzhen local government, with news publication reporting in August that the company benefits from research and development funding, tax incentives, and support for overseas expansion.
In August 2023, Honor announced plans to relaunch in India through a licensing deal with a local company, with China’s businesses struggling in the country due to the extra challenges imposed by the government.
"Honor pledges $10bn investment in AI devices" was originally created and published by Verdict, a GlobalData owned brand.
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