Honor spend $10 billion on developing AI devices: Alright, so Honor is going all-in on AI. Like, not just dipping its toes in—more like a full cannonball. The Shenzhen-based company, best known for its smartphones, just announced that it’s dropping a whopping $10 billion over the next five years to develop AI-powered devices. We’re talking PCs, tablets, and wearables, all getting an AI upgrade.
And why? Well, Honor wants to move beyond just being “that smartphone brand” and become a major player in AI tech. CEO James Li spilled the details at Mobile World Congress (MWC) in Barcelona, making it clear that Honor isn’t here to mess around. The company’s gearing up for a public listing, and this big AI push is a huge part of that plan.
Shifting Gears: From Smartphones to AI Everything
o, here’s the deal—Honor isn’t just about phones anymore. Sure, that’s what they’re known for, but now they’re thinking bigger. Their game plan? Honor invests $10 billion in AI-powered devices development to create a whole AI ecosystem. That means PCs that think for themselves, tablets that predict your needs, and wearables that do way more than just count your steps.
And let’s be real—this move makes sense. AI is the hot topic right now, and companies everywhere are scrambling to get a piece of the action. Honor allocates $10 billion for AI device innovation, and they’re not the only ones. China is seeing an AI investment frenzy, with businesses from local governments to home appliance brands trying to get in on the action. The buzz started when startup DeepSeek dropped its low-cost large language models, and now everyone’s racing to integrate the tech.
Competition is Heating Up
But here’s where things get tricky. Honor used to be the second-biggest phone brand in China, but last year, they slipped down to fourth place. Ouch.
Why? Well, Huawei—Honor’s former parent company—is back in the game and making things difficult. On top of that, brands like Vivo are growing fast, which means Honor has to fight harder to stay relevant. And that’s exactly what they’re doing by doubling down on AI.
Honor pours $10 billion into AI device research and production to get ahead of the competition. If they can make AI the reason people buy their products, they might just climb back up the ranks.
Government Backing & Future Moves
One major advantage? Shenzhen’s local government is playing a key role in Honor’s growth. According to reports, they’re offering significant research and development funding, tax incentives, and assistance in expanding overseas markets. Basically, they want Honor to succeed—and they’re willing to throw resources behind them to make sure it happens.
And let’s not forget the whole IPO thing. Last December, Honor did some behind-the-scenes restructuring to move closer to a public listing. No official date yet, but the possibility is looking more likely. This AI strategy? It’s not just about innovation—it’s also about making Honor a hot stock when the time comes.
The Bottom Line
Honor is betting big on AI. Honor plans to spend $10 billion over the next five years on developing AI for its devices, and they’re hoping it’ll be their ticket to the top. But with fierce competition, shifting market trends, and the pressure of going public, they’ve got a lot to prove.
Will this gamble pay off? Only time will tell. But one thing’s for sure—Honor is making moves, and the AI race just got a whole lot more interesting. Stay tuned.
