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China's Honor pledges $10 billion AI investment and deepens ties with Google in global push
CNBC· 2025-03-02 16:30
Core Insights - Honor has announced a $10 billion investment in artificial intelligence over the next five years, aiming to transform from a smartphone manufacturer into an "AI device ecosystem company" [2][3] - The company is deepening its partnership with Google, utilizing Google's AI technology for its devices and committing to seven years of Android operating system support for its flagship Magic series smartphones [6][7] Investment Strategy - The investment will focus on integrating AI into hardware and developing next-generation AI agents, which are advanced virtual assistants [3][4] - A portion of the funds will be allocated to creating a platform for various AI devices, allowing interoperability among devices from different partners [4] Market Position - Honor's global smartphone market share outside of China increased from 1.7% in 2023 to 2.3% in 2024, indicating progress in expanding its market presence [3] - The company aims to compete in the high-end market segment dominated by Apple and Samsung [2] Technological Development - Honor demonstrated a proof of concept for an AI agent capable of making restaurant reservations based on user preferences, showcasing its AI capabilities [5] - The company is collaborating with Google and Qualcomm to develop its AI agent, although no specific release timeline has been provided [5] Partnership with Google - Honor's strengthened relationship with Google is significant, positioning it alongside major players like Samsung and Google’s own Pixel products in terms of access to advanced AI technology [8]