Customers browse Huawei telephones in a shopping center in Yantai, Shandong Province, China on March 8, 2026.
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Huawei’s push to develop its personal synthetic intelligence chip has but to drive the double-digit income beneficial properties of its friends, as Chinese language corporations attempt to slender the hole with the U.S. on AI.
Cloud computing income from exterior clients fell by 3.5% in 2025 to 32.16 billion yuan ($4.6 billion), Huawei mentioned. Though that’s lower than 4% of Huawei’s complete income, the corporate is the second-largest cloud supplier in mainland China.
Whereas general cloud income together with inside clients rose by 4.8% to 72.8 billion yuan, the principle ICT infrastructure section reported income progress that slowed to 2.6%, down from 4.9% in 2024.
That is the section that would come with Huawei’s self-developed Ascend AI chip options, meant to rival Nvidia. Huawei’s complete ICT income for 2025 was 375.01 billion yuan.
The U.S. has restricted Chinese language corporations’ entry to essentially the most superior Nvidia chips, whereas Beijing has urged tech self sufficiency at house.
Huawei’s decline in cloud income to exterior clients comes as ByteDance has quickly grown its AI cloud enterprise in China within the final a number of months, albeit from a small base.
The TikTok proprietor is reportedly ramping up entry to high-end Nvidia chips in a partnership take care of a deliberate Malaysia knowledge middle. ByteDance and Alibaba additionally plan to position orders of Huawei’s new AI chip, Reuters reported final week, citing sources. ByteDance declined to remark. The 2 different Chinese language corporations didn’t instantly reply to a CNBC request for remark.
U.S.-developed AI instruments are typically thought of essentially the most succesful on the earth, though some Chinese language fashions have proven an edge in video technology. Not all U.S. AI fashions are formally accessible in mainland China.
Huawei’s modest cloud progress figures come amid fast business enlargement worldwide and slower financial progress in China.
Globally, spending on cloud infrastructure companies rose by 29% within the fourth quarter in a sixth-straight quarter of market enlargement of greater than 20%, in response to Omdia. The agency predicts 27% cloud progress in 2026.
Earlier this month, Alibaba, the most important cloud computing firm by market share in mainland China, reported a 36% enhance in section income to 43.28 billion yuan in 2025. Tencent mentioned elevated cloud service revenues domestically and internationally helped drive a 22% year-on-year enhance in enterprise companies income in 2025.
Native promotions this month in China for AI instrument OpenClaw have additionally inspired many locals to obtain the agent and pay for associated cloud and AI mannequin companies. China’s client spending has remained tepid for the reason that pandemic.
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Huawei smartphones ranked first in China final 12 months by shipments, up by 1.7%, in response to Counterpoint. However the Chinese language firm misplaced floor to Apple towards the top of 2025 after the iPhone 17’s launch.
For 2025 general, the telecommunication big reported income of 880.9 billion yuan, up 2%, on web revenue of 68 billion, up round 8% from a 12 months in the past.
The corporate spent a report 192.3 billion yuan in analysis and growth, or 21.8% of income.
“In 2025, Huawei’s general efficiency remained regular,” Sabrina Meng, Huawei’s rotating chairwoman, mentioned in a quick assertion, which additionally expressed gratitude to clients, companions and staff.
The clever automotive options unit noticed income of 45.02 billion yuan, with progress slowing to 72% year-on-year, down from a whopping 474.4% in 2024, because the autos enterprise captured an preliminary surge in electrical autos. Huawei companions with a number of car producers for in-car software program and driver-assist expertise.
