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Huawei abolished its artificial intelligence division. It lasted a little over a year
Since 20021, the Chinese company Huawei Technologies has been making efforts to develop business in the field of cloud server systems, and a strategy in this direction was determined back in 2021. Having existed for 14 months, the division of cloud technologies and artificial intelligence systems was disbanded, and functions were distributed between two other structures.
Image source: Reuters
Reforms within Huawei reported by Nikkei Asian Review, citing Caixin familiar with the official newsletter. As stated in a document circulated on April 2, operations related to the server segment and data storage systems will come under the control of the Huawei division, which oversees the development of Internet products and solutions. It will also be responsible for the development of new hardware components.
Huawei’s cloud business will continue its core business, but now AI services will not be spun off. Zhang Pingan, who recently oversaw the development of cloud systems in the consumer sector and reports to Richard Yu, who headed the disbanded Huawei division until this month, has been appointed President of the cloud division. Who will report to Zhang Pingan now, Huawei does not specify.
Huawei Technologies Chairman Ken Hu said at the end of last month that the company’s cloud division’s annual revenue grew 168% as the pandemic spurred the segment. Founder Ren Zhengfei admitted last November that the company’s cloud business was lagging behind its competitors, but hoped a dedicated unit would close the gap. According to anonymous representatives of Huawei, the company was disappointed in this business against the background of its own inability to catch up with competitors and late entry into this market.