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Huawei's cloud computing revenue dropped in 2025 as Chinese AI lagged U.S. rivals

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Why This Matters

Huawei's declining cloud computing revenue in 2025 highlights the challenges Chinese tech firms face in competing with U.S. AI technology. Despite efforts to develop indigenous AI chips, Huawei's growth has lagged behind its global rivals, underscoring the ongoing tech race between China and the U.S. in AI innovation. This situation emphasizes the importance of technological independence and the impact of international restrictions on China's tech industry.

Key Takeaways

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.