Huawei revamps cloud unit to focus on AI amid China-US tech tensions
Huawei revamps cloud unit to focus on AI amid China-US tech tensions
Huawei Technologies has initiated a major restructuring of its cloud computing unit, shifting its core focus toward artificial intelligence as the company continues to navigate restrictions from Washington. According to Chinese media reports and employees familiar with the matter, the subsidiary responsible for AI model development, cloud services, and data centre solutions has merged several key departments to strengthen AI-related business.
The restructuring was announced internally by Zhang Pingan, CEO of Huawei’s cloud division. After the revamp, the unit’s operations will be streamlined into six divisions covering areas such as computing, storage, database, and cybersecurity. Huawei’s Cloud Business Unit told National Business Daily that the aim is to deliver more advanced cloud services through software and hardware collaboration and architectural innovation, while investing additional resources in AI and computing industries.
Reports from Sina indicated that the move is also part of efforts to achieve profitability following losses last year. Huawei launched its CloudMatrix 384 system earlier this year, seen as a direct competitor to Nvidia’s NVL72, and also open-sourced its Compute Architecture for Neural Networks toolkit as an alternative to Nvidia’s CUDA. The company additionally introduced the Unified Cache Manager algorithm to reduce reliance on costly high-bandwidth memory chips.
Huawei’s cloud business generated 68.8 billion yuan (US$9.6 billion) in revenue in 2024, representing nearly 10 per cent of the company’s overall income. Meanwhile, employees leaving Huawei remain highly sought after, with firms such as Alibaba Group Holding and ride-hailing platform Didi Chuxing advertising job offers over the weekend on Chinese social media platform RedNote.
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About Huawei Enterprise
Huawei’s enterprise and AI division has become a central pillar of the company’s strategy as it adapts to global technology restrictions. Through its Huawei Cloud and Enterprise Business Group, the company delivers cloud services, data centres, networking, and digital transformation solutions to governments and industries worldwide. The division has invested heavily in artificial intelligence, launching its Ascend AI processors, MindSpore deep learning framework, and the CloudMatrix 384 system to compete with Nvidia’s dominance in high-performance computing.
Huawei’s AI offerings support applications across smart cities, logistics, healthcare, and finance, combining hardware with software innovation. In addition, the company is promoting open-source tools like its Compute Architecture for Neural Networks (CANN) to strengthen China’s domestic ecosystem. With annual cloud revenue exceeding 68.8 billion yuan, nearly 10 per cent of its total, Huawei’s enterprise and AI division underscores its ambition to be a global leader in cloud and intelligent computing despite U.S. sanctions.
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