Huawei’s cloud computing revenue dropped in 2025 as Chinese AI lagged U.S. rivals

Huawei, a Chinese tech giant, has been making strides in developing its own artificial intelligence chip in an effort to compete with its peers and narrow the gap with the U.S. However, the company has not seen the double-digit revenue gains that its competitors have experienced in the AI sector.

In 2025, Huawei reported a 3.5% decline in cloud computing revenue from external customers, amounting to 32.16 billion yuan ($4.6 billion). Despite this decrease, Huawei remains the second-largest cloud provider in mainland China. The overall cloud revenue, including internal customers, saw a modest 4.8% increase to 72.8 billion yuan. However, the revenue growth in the ICT infrastructure segment, which includes Huawei’s Ascend AI chip solutions, slowed to 2.6% from 4.9% in 2024. Huawei’s total ICT revenue for the year was 375.01 billion yuan.

The company’s push to develop its own AI chip comes as the U.S. has restricted Chinese companies’ access to advanced Nvidia chips, prompting Beijing to promote tech self-sufficiency. Despite these efforts, Huawei’s cloud growth figures have been modest compared to the rapid expansion of the industry globally.

In contrast, ByteDance, the owner of TikTok, has seen significant growth in its AI cloud business in China. The company has reportedly secured access to high-end Nvidia chips through a partnership for a planned data center in Malaysia. Additionally, ByteDance and Alibaba are said to be placing orders for Huawei’s new AI chip. U.S.-developed AI tools are considered the most advanced globally, but some Chinese models have shown promise, particularly in video generation.

While Huawei’s cloud revenue has slowed, Alibaba and Tencent, two other major Chinese tech companies, have reported significant revenue increases in their cloud computing segments. Alibaba saw a 36% increase in segment revenue to 43.28 billion yuan in 2025, while Tencent reported a 22% year-on-year increase in business services revenue.

Despite the challenges in the cloud sector, Huawei remains a dominant player in the smartphone market in China. In 2025, the company’s smartphones ranked first in the country by shipments, although it faced stiff competition from Apple after the release of the iPhone 17. Overall, Huawei reported revenue of 880.9 billion yuan, up 2%, with a net profit of 68 billion, up around 8% from the previous year.

The company’s intelligent automotive solutions unit also saw growth, with revenue reaching 45.02 billion yuan. Huawei partners with various automobile manufacturers to provide in-car software and driver-assist technology.

In conclusion, while Huawei continues to face challenges in the cloud sector, the company’s overall performance remains steady. With a focus on developing its own AI chip and expanding its presence in the smartphone and automotive markets, Huawei is poised to remain a key player in the tech industry. The world of online shopping is constantly evolving, with new trends and technologies emerging all the time. One of the latest trends to hit the e-commerce scene is the rise of virtual shopping experiences. These virtual shopping experiences are changing the way we shop online, offering a more immersive and interactive experience for consumers.

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