At the Mobile World Congress in Barcelona, Honor, the Chinese smartphone brand, announced a bold plan to invest $10 billion in AI over the next five years. This move signifies Honor’s transition from a smartphone maker to a broader AI device ecosystem company, aiming to expand its global market share and compete with tech giants like Apple and Samsung, particularly in the premium smartphone sector.

AI Investment and the Future of Devices

Honor’s $10 billion AI investment will focus on integrating AI into both hardware and software, with plans to develop next-generation AI agents that act as advanced virtual assistants. A portion of this funding will go toward building a platform that connects various AI devices, creating a seamless experience for consumers across a range of technologies. This initiative goes beyond Honor’s own products, allowing devices from different partners to communicate with one another.

A smaller portion of the investment will focus on preparing for AGI (Artificial General Intelligence), a type of AI that exceeds human intelligence. While AGI is still in its infancy, Honor’s commitment to this cutting-edge technology positions it as a forward-thinking player in the evolving AI landscape.

Strengthened Partnership with Google and the Role of AI

Honor also revealed deeper collaboration with Google, which will help strengthen its role within the Android ecosystem. A key highlight of this partnership was the demonstration of an AI agent capable of performing tasks like booking restaurant reservations based on user preferences. Honor’s partnership with Google Gemini AI and chip designer Qualcomm is expected to drive the development of more advanced AI features, though the exact release timeline remains undisclosed.

Additionally, Honor committed to offering seven years of Android OS updates and security patches for its Magic series flagship devices, aligning itself with Google’s Pixel and Samsung’s Galaxy series. This extended support enhances Honor’s reputation and demonstrates its growing integration with the Android platform, signaling its potential to challenge the top players in the global smartphone market.

The Road Ahead for Honor

Since its spin-off from Huawei in 2020, Honor has made significant strides in the smartphone market, even releasing foldable smartphones that compete with the iPhone. However, Honor’s global market share remains modest, standing at just 2.3% in 2024, up from 1.7% in 2023, according to IDC data.

Honor’s focus on AI technology and its deepened Google partnership are crucial to its strategy for expanding beyond China and entering the premium smartphone market. As Honor continues to invest in next-generation AI features and devices, the company is positioning itself to attract more consumers and gain a larger share of the global market.

With these ambitious plans and increased collaboration with Google, Honor is certainly a company to watch as it competes in the fast-evolving AI and smartphone industries.