Huawei's cloud computing revenue dropped in 2025 as Chinese AI lagged U.S. rivals
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When including internal customers, the telecommunications giant said cloud computing revenue grew from a year ago.
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In this article BABA Follow your favorite stocks CREATE FREE ACCOUNT Consumers browse Huawei phones in a shopping mall in Yantai, Shandong Province, China on March 8, 2026. Cfoto | Future Publishing | Getty Images Huawei's push to develop its own artificial intelligence chip has yet to drive the double-digit revenue gains of its peers, as Chinese companies strive to narrow the gap with the U.S. on AI. Cloud computing revenue from external customers fell by 3.5% in 2025 to 32.16 billion yuan ($4.6 billion), Huawei said. The company is the second-largest cloud provider in mainland China. While overall cloud revenue including internal customers rose by 4.8% to 72.8 billion yuan, the main ICT infrastructure segment reported revenue growth that slowed to 2.6%, down from 4.9% in 2024. That's the segment that would include Huawei's self-developed Ascend AI chip solutions , meant to rival Nvidia . Huawei's total ICT revenue for 2025 was 375.01 billion yuan. The U.S. has restricted Chinese companies' access to the most advanced Nvidia chips, while Beijing has urged tech self sufficiency at home. watch now VIDEO 6:05 06:05 Rebellions CEO on the future of memory, AI chips Europe Early Edition Huawei's decline in cloud revenue to external customers comes as ByteDance has rapidly grown its AI cloud business in China in the last several months, albeit from a small base. The TikTok owner is reportedly ramping up access to high-end Nvidia chips in a partnership deal with a planned Malaysia data center . ByteDance and Alibaba also plan to place orders of Huawei's new AI chip, Reuters reported last week, citing sources . ByteDance declined to comment. The two other Chinese companies did not immediately respond to a CNBC request for comment. U.S.-developed AI tools are generally considered the most capable in the world , although some Chinese models have shown an edge in video generation. Not all U.S. AI models are officially accessible in mainland China. Huawei's modest cloud growth ...
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