Google And China’s Honor Deepen AI Partnership As Huawei Spin-Off Takes On Apple And Samsung With $10 Billion Investment

Honor has ramped up its AI ambitions with a $10 billion investment over the next five years, alongside a deeper partnership with Alphabet Inc.’s GOOG GOOGL Google, as it looks to compete with Apple Inc. AAPL and Samsung Electronics Co. SSNLF in the global smartphone market.

What Happened: On Sunday, the Chinese smartphone maker, which spun off from Huawei Technologies in 2020, announced the investment at the Mobile World Congress in Barcelona, according to a report by CNBC.

The funding aims to transform Honor from a smartphone manufacturer into an “AI device ecosystem company.”

“This is not limited to our own devices, but also AI devices from different partners, so the different kinds of AI devices can talk to each other, and consumers can have more choices and seamless experiences,” an Honor spokesperson told the publication.

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Honor also unveiled a proof-of-concept AI agent that can complete tasks such as booking restaurant reservations based on user preferences. The company is collaborating with Google and Qualcomm Inc. QCOM on the project, though it has not provided a release timeline.

In another move signaling closer ties with Google, Honor committed to seven years of Android updates and security patches for its Magic series flagship smartphones, aligning it with Google’s Pixel and Samsung’s Galaxy S series.

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Why It’s Important: Honor has been working on expanding beyond China and targeting the premium smartphone market, competing with Apple and Samsung.

It has gained some traction with innovative devices, including foldable phones. However, it remains a minor player globally.

According to International Data Corp, global smartphone shipments increased by 2.4% in the fourth-quarter of 2024, marking six straight quarters of growth. Chinese brands expanded their market share by offering both budget-friendly and premium devices in emerging markets.

IDC data also shows that Honor’s market share outside China rose from 1.7% in 2023 to 2.3% in 2024.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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