Huawei's AI Ambitions Face a Cruel Summer

• Huawei's cloud revenue from external customers experienced a 3.5% decline in 2025, highlighting challenges in their AI push.
• Despite overall growth, Huawei's ICT infrastructure segment, including AI chip solutions, saw a slowdown in revenue growth compared to the previous year.
• Competition intensifies as ByteDance expands its AI cloud business and collaborates on high-end Nvidia chips, posing a threat to Huawei's market share.
• Huawei's consumer business slows down, with a sharp decrease in segment growth from 2024 to 2025, despite leading in smartphone shipments in China.

Cloudy with a Chance of Headwinds

Okay, so picture this: I'm backstage, mic in hand, ready to drop the next big hit, but the speakers are… lagging. That's kind of how Huawei's AI cloud situation feels right now. They're hustling to create their own AI chips, a total "Mean" move against US restrictions, but the revenue from external cloud clients took a 3.5% dip in 2025. It's like writing a song that everyone loves, but nobody streams. You know, a real "Miss Americana & the Heartbreak Prince" moment. Even tech giants aren't immune to a little turbulence, right?

Infrastructure Slowdown: Not So 'Swift' Growth

Let's break it down like a bridge in one of my songs. The main ICT infrastructure, which houses Huawei’s self-developed Ascend AI chip solutions (their answer to Nvidia), grew, but at a snail's pace – 2.6%, way down from 4.9% the year before. It’s like releasing a deluxe album, but everyone’s still stuck on the original. It's a reminder that innovation takes time, and sometimes, the journey to the top is more like a "Long Story Short" than a meteoric rise. But hey, at least they're trying to shake things up! Speaking of shaking things up, it seems like Jack Dorsey's Shockwave AI Job Cuts Signal a Brave New World may also be indicative of the shifts we're seeing in the AI landscape.

ByteDance Steps Onto the Stage

Enter ByteDance, the TikTok titans, making a "Getaway Car" move into the AI cloud business. They're cozying up with Nvidia and building data centers in Malaysia. It's giving me major "Bad Blood" vibes – competition is heating up. Huawei, Alibaba, and ByteDance are planning orders of Huawei's new AI chip. Seems like everyone wants a piece of the pie. And as someone who's been in the music industry for a while, I can tell you, more players mean more drama.

US Sanctions: A 'Cruel Summer' Indeed

Ah, the US restrictions, the uninvited guest at the party. These sanctions limiting access to advanced Nvidia chips are pushing China toward tech self-sufficiency. It’s a classic tale of "us vs. them," forcing Huawei to innovate in a world where the playing field isn’t exactly even. Think of it as trying to write a hit song with only three chords – challenging, but not impossible.

Consumer Spending: The Plot Thickens

Huawei's consumer business isn’t hitting those high notes. While they led in smartphone shipments in China, they lost ground to Apple at the end of 2025. Growth slowed significantly from 38.3% to a mere 1.6%. Consumer spending is tepid. It’s like performing to a crowd that’s more interested in their phones than the music – a tough crowd, indeed. But you know what they say: 'the bigger the stadium, the bigger the ego'.

The Show Must Go On

Despite the headwinds, Huawei's total revenue increased by 2%, and they're doubling down on R&D, spending a whopping 192.3 billion yuan. Sabrina Meng, Huawei's rotating chairwoman, remains optimistic, expressing gratitude to customers, partners, and employees. It’s a reminder that even in the face of challenges, the show must go on. After all, as I always say, "Shake It Off!" Because, darling, I'm a nightmare dressed like a daydream.