Another Player in the AI Race? China’s Honor to Invest $10 Billion in AI Devices

Honor is investing $10 billion to integrate AI into smartphones, tablets, and wearables, aiming to redefine the future of smart devices.

Honor is going all in on artificial intelligence. The Chinese tech company has announced a massive $10 billion investment over the next five years to integrate AI into its devices, signaling a major shift beyond just smartphones.

CEO James Li unveiled the ambitious plan at the Mobile World Congress (MWC) 2025 in Barcelona, calling it a step toward making AI-powered technology more accessible.

From Smartphones to AI-powered Everything

Honor, once a subsidiary of Huawei, is looking to evolve into a broader AI tech company. That means AI-driven enhancements not just for smartphones but also for tablets, laptops, and wearables.

At MWC, the company introduced the "Honor UI Agent," a next-gen AI assistant that interacts directly with on-screen content. Unlike traditional assistants, this one can book a restaurant, schedule an appointment, or find product recommendations—without relying on third-party apps.

This AI push is part of what Honor is calling its "Honor Alpha Plan," a long-term strategy to lead in the AI-integrated device market.

A Crowded AI Race in China

Honor isn't alone in its AI ambitions. China’s tech industry is seeing a surge in AI investment, with companies from smartphone makers to appliance brands racing to incorporate AI features into their products. Local governments are also backing AI innovation, making the sector one of the fastest-growing in China’s economy.

But despite its bold vision, Honor is facing stiff competition. The company, which once held the No. 2 spot in China’s smartphone market, has now slipped to fourth place with a 14.9% market share, losing ground to Huawei and Vivo.

However, government support could work in Honor’s favor. The Shenzhen government is reportedly offering R&D funding, tax benefits, and expansion support to help the company scale its AI operations.

A Step Toward an IPO?

Honor's AI bet also comes amid speculation about a possible IPO. In December, the company underwent a shareholder restructuring, moving it closer to a public listing—though no timeline has been confirmed.

With $10 billion on the table, Honor is making it clear that it sees AI as the future of consumer tech. Whether this gamble will pay off remains to be seen, but one thing is certain: the AI arms race is only getting more intense.