Honor CEO Unveils USD 10 Billion Investment to Boost AI Integration in Devices

In a bid to drive the Chinese smartphone maker's shift toward artificial intelligence (AI) and integrate the technology across its devices, Honor's new CEO has pledged a $10 billion investment over the next five years.

Ahead of the annual MWC mobile trade show, Honor CEO James Li Jian announced the "Alpha" investment plan on Sunday in Barcelona, outlining the company's new strategy to evolve from a smartphone maker into an AI-powered ecosystem company.

Li stated that the initiative will begin with the launch of an AI-powered smartphone designed to revolutionize how users interact with their devices, with plans to gradually expand the technology to other products like wearables, tablets, and PCs.

A company spokesperson also revealed that Honor plans to allocate the majority of the $10 billion to collaborate with global partners in order to "push technological boundaries" and "co-create a new paradigm for AI devices in the age of agentic AI."

The remaining funds will be allocated to preparing for the era of artificial general intelligence and facilitating communication between various AI-powered devices.

Li, who took over from longtime leader George Zhao Ming in January, urged industry partners to combine their AI expertise to create a platform for a wide range of AI-enabled devices.

This announcement comes amid a leadership transition as the Shenzhen-based smartphone maker charts a new course. With manufacturers racing to integrate AI features into their devices, the smartphone market is expected to become increasingly competitive, presenting a significant challenge for the new leadership.

In related news, Honor revealed last week that it has integrated the R1 model from Chinese AI startup DeepSeek into its Yoyo virtual assistant, as well as its search engine for laptops and smartphones.

Honor has teamed up with Google to incorporate Gemini AI models into its products worldwide. Some AI features on Honor's flagship devices, including translation and the photo "AI eraser," are powered by the US company.