Chinese smartphone maker Honor plans to invest$10 billion over the next five years to develop AI for its devices as it prepares for a public listing. CEO James Li revealed at the Mobile World Congress in Barcelona that the company aims to expand beyond smartphones into AI-powered PCs, tablets, and wearables.

Honor's push into AI comes after completing a shareholder restructuring in December, bringing it closer to an initial public offering, though no timeline has been set. The announcement also aligns with a surge in AI investment in China, driven by the popularity of DeepSeek's affordable language models.

While Honor's market share in China slipped from second to fourth place last year, it has gained significant support from the Shenzhen government, including R&D funding and tax breaks. The company is also focusing on expanding internationally as it strengthens its AI capabilities.