Finally, Honor has revealed its ‘Alpha Plan’ which was teased last week, but no details were available. Over the next five years, Honor is investing $10 billion in AI – that’s right, $10 billion. Honor doesn’t just intend to postulate about the future from the sidelines; it intends to dive right in. The company has a clear vision of building an ecosystem of products that are powered by artificial intelligence and are not limited to smartphones but extend to PCs, tablets and wearables. Furthermore, Honor is also planning to go public and strengthen its position in the global tech arena.
The ‘Alpha Plan’
The plan was announced at MWC 2025 in Barcelona and Honor’s “Alpha Plan” is not your usual upgrade strategy. The plan is based on an ‘intelligent phone’ that can understand what is on the screen, make restaurant reservations or even create a summary of a document before even being asked. Their CEO, James Li, doesn’t beat around the bush: “I call upon all of us to unite to face the numerous challenges and opportunities that AI technology poses before us.”
Of course, Honor is entering the ring where the big players – Google, Apple, and Samsung – have been throwing punches for years. The challenge is therefore stated for Honor here: to stand out in a market full of AI assistants, flawless execution is required.
Strategic Partnerships
It also makes a great deal of strategic sense that Honor has partnered with Google Cloud and Qualcomm. This is not to lock themselves into a limited ecosystem; it is to ensure that our AI technology is portable across all platforms. Furthermore, to make things better for customers, Honor has promised to offer Android updates for its Magic series flagship devices for seven years, which puts it on par with Google and Samsung. It is now Honor’s turn to prove that it can fulfill that promise.
HONOR’s IPO plans
Apart from the AI revolution, Honor is looking to go public – an accomplishment that could change the latter’s course. The share structure has been fully rationalised and there is no information available on the timing and location of the listing. But, the rumors suggest that Honor could be valued at 200 billion yuan (about $27.4 billion), which shows that investors are optimistic about its AI strategy. Honor receives R&D support from the Shenzhen government, tax breaks and assistance for international business development, so it has all the tools to turn its dream into reality. Nevertheless, hype has to be backed up by actual outcomes.
The Market Reality: The Battle to Return to the Top
Although this is all very well when it comes to discourse on AI, Honor is not doing very well in China at the moment – it has fallen from second to fourth in terms of market share at the end of 2024. Competition is fierce with Huawei, Vivo, and others, so this shift to AI is not only about technology, it is about bringing the fight. But it may be just in time. China is investing in AI and startups like DeepSeek are proving that AI is revolutionizing various sectors fast. If Honor can manage to integrate AI into the real world and not only in the presentations, it may be able to regain its leadership in the smartphone market and even expand to other segments.
It will be a crucial few months following up from MWC 2025. Honor has laid down the bar with its plans, and now it is all about delivering on those promises.
