On Sunday, March 2, 2025, Chinese smartphone maker Honor made waves at Mobile World Congress (MWC) by pledging a colossal $10 billion investment in artificial intelligence (AI) over the next five years. Alongside this, the company unveiled a strengthened partnership with Google, signaling its ambition to transform from a smartphone vendor into a full-fledged “AI device ecosystem company.” This bold move aims to boost Honor’s overseas market share and challenge giants like Samsung and Apple in the premium device space.
From Huawei Spin-Off to Global Contender
Honor’s journey began in 2020 when it split from Huawei amid U.S. sanctions that crippled its parent company. Starting with budget-friendly smartphones, Honor has since ventured overseas, particularly targeting Europe’s high-end market. In 2024, its global smartphone shipments outside China grew from 1.7% to 2.3%, per IDC data—modest, but a sign of progress with innovations like foldable phones. Now, Honor’s $10 billion AI push, revealed at MWC 2025, is its ticket to leap from a minor player to a tech ecosystem titan.
What’s the $10 Billion For?
Honor’s investment isn’t just about phones—it’s about building a connected AI future. A spokesperson told CNBC the funds will fuel:
- AI-Infused Hardware: Embedding AI into devices like smartphones, wearables, and beyond.
- Next-Gen AI Agents: Advanced virtual assistants that handle complex tasks—like the proof-of-concept demo at MWC where an AI booked a restaurant based on user preferences (cuisine type, distance).
- A Cross-Device Platform: Creating an open ecosystem where AI devices from Honor and partners inter-operate seamlessly, offering consumers more choice and fluidity.
A sliver of the cash will also prep Honor for the “AGI era”—Artificial General Intelligence, where AI could outsmart humans. No timeline was given for the AI agent’s full release, but Honor’s working with Google and Qualcomm to make it happen.
Deepening Ties with Google
Honor’s MWC spotlight included a tighter bond with Google. The company is tapping Google’s Gemini AI system to power features in its latest devices, putting it on par with Samsung’s Galaxy line and Google’s Pixel phones. Honor also pledged seven years of Android OS and security updates for its Magic series flagships—a rare commitment shared only by Google’s Pixel and Samsung’s S-series devices.
Ben Wood of CCS Insight called this partnership “very significant” to CNBC, noting, “It felt like Google was keeping Chinese smartphone makers at arm’s length with Gemini AI. This puts Honor on par with Samsung and Pixel—a coup.” While the seven-year support isn’t a direct Google mandate, it underscores Honor’s alignment with Android’s biggest players, trailing only Samsung and Xiaomi in Google ties among Android vendors.
Challenging Samsung and Apple
Honor’s premium pivot pits it against Samsung and Apple, who dominate the high-end market. The AI agent demo—think Siri or Google Assistant on steroids—hints at a user experience that could rival the competition. Posts on X speculate about Honor’s foldable Magic V3 integrating this AI, potentially outshining Samsung’s Galaxy Z Fold 7. Meanwhile, its ecosystem vision echoes Apple’s walled garden but aims for openness, inviting third-party devices to join the party.
What’s Next for Honor in 2025?
With $10 billion on the table and Google in its corner, Honor’s MWC 2025 splash is a declaration of intent. It’s not just chasing market share (still a modest 2.3% globally)—it’s redefining itself as an AI trailblazer. Will it erode Samsung’s Android throne or dent Apple’s premium grip? The road’s long, but Honor’s got the cash, the tech, and the buzz to make a dent. Keep watching as its AI ecosystem unfolds—Barcelona was just the start!
