Chinese smartphone maker Honor plans to invest $10 billion over the next five years in AI development for its devices, according to CEO James Li, speaking on Sunday.
The Shenzhen-based company is aiming to expand beyond its smartphone roots, with plans to develop a range of AI-powered PCs, tablets, and wearables. Li shared these details during his speech at the Mobile World Congress (MWC) in Barcelona.
In December, Honor revealed it had completed a shareholder restructuring, bringing it a step closer to an initial public offering, although no specific timeline has been set.
Honor’s announcement comes as China experiences a surge in AI investment, fueled by growing interest in startup DeepSeek’s affordable large language models. This has prompted a wide range of stakeholders, from local governments to home appliance manufacturers, to rush in and either integrate DeepSeek’s technology or ramp up their own AI research efforts.
According to consultancy IDC, Honor dropped from second to fourth place in China’s phone shipments last year, capturing a 14.9% market share. This decline was due to increased competition from its former parent, Huawei, and strong growth from Vivo.
In August, Reuters reported that Honor is receiving significant support from the Shenzhen local government, including funding for research and development, tax incentives, and assistance in expanding internationally.
