finance
Huawei Cloud Revenue Declines in 2025 Amid AI Lag; Tencent Reports Revenue Beat on AI Investments
Huawei's cloud computing revenue fell in 2025 due to China's AI technology trailing U.S. competitors, though it grew when including internal customers. Tencent exceeded revenue estimates for the year, attributing the performance to its core business funding expanded AI investments. These developments highlight contrasting trajectories in China's tech sector AI strategies.
Mar 18, 6:35 AM·1m read2 sources
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Cloud Revenue Performance Huawei reported a decline in its cloud computing revenue for 2025, attributing the drop to China's artificial intelligence technologies lagging behind U.
U.S. rivals. The telecommunications company noted that the revenue grew year-over-year when including revenue from internal customers. This distinction underscores the role of internal usage in overall figures.
The lag in Chinese AI capabilities was cited as a primary factor in the external revenue decline. Huawei, a major player in telecommunications and cloud services, operates extensively in China and globally. Specific revenue numbers were not detailed in the reports.
Revenue Exceeds Expectations Tencent announced that its 2025 revenue surpassed analyst estimates.
The Chinese tech giant stated that its core business operations generated the resources needed to support increasing investments in artificial intelligence. This performance reflects sustained strength in Tencent's primary revenue streams, such as gaming and social media. Tencent's focus on ramping up AI investments aligns with broader industry trends in China.
The company did not provide breakdowns of AI-specific contributions to revenue. Analysts had projected lower figures prior to the announcement.
While Huawei faced challenges in external cloud revenue due to AI competitiveness issues, Tencent leveraged its core strengths to fund AI expansion.
No direct contradictions appear between the reports, but they illustrate divergent outcomes for major Chinese firms in the AI-driven cloud sector. U.S. AI advancements, from firms like those in Silicon Valley, set a high benchmark.
