The director and Yu Chengdong both hold hands, one is the next target to determine AI technology, while the other is a smartphone competing for future market share.
On December 21st, Baidu and Huawei announced a comprehensive strategic partnership. The collaboration focuses on the Chinese market and user experience, with joint efforts across natural interaction, artificial intelligence platforms, ecosystems, content, and services.
The specific areas of cooperation include AI platform integration, where both companies will leverage Huawei’s HiAI platform and Baidu’s PaddlePaddle deep learning framework. This will combine Huawei’s NPU capabilities with Baidu’s AI brain to build an open ecosystem that supports developers in creating more intelligent applications and services. Additionally, they will work together on voice and image recognition across various smart devices to enhance human-computer interaction.
In the field of AR innovation, the two companies plan to establish an AR ecosystem through a combination of software and hardware, focusing on technological development and real-world implementation.
For internet services and content, they will deepen their collaboration in search and information flow.
During the conference, Robin Li emphasized that the partnership between Baidu and Huawei was natural, given their shared values and technical strengths. Both companies have a strong engineering culture—Huawei's "wolf culture" and Baidu's reputation as a "wolf factory." With Baidu’s long-term investment in AI and Huawei’s large user base, they can achieve more than before.
Li Yanhong also highlighted that the most valuable companies today are Apple (a mobile phone company) and Google (an AI leader). He believes the Baidu-Huawei partnership represents a powerful synergy between mobile phones and AI, which he hopes will take root and eventually bear fruit.
From the perspective of mobile phone manufacturers, Yu Chengdong, CEO of Huawei Consumer Business, stated that this is the strongest collaboration between the two companies. He noted that future smartphones will rely not just on hardware but on delivering the best user experience. As the industry moves toward smarter devices, the phone will evolve into an intelligent assistant. He also mentioned that competition will intensify, and only a few giants will survive, with Huawei aiming to increase its global market share in the coming years.
From Baidu’s side, the collaboration aligns with its strategy to focus fully on AI and get closer to end users. Since 2016, Baidu has been investing heavily in AI, redefining itself as an AI company. The stock price surge showed that the market recognized its efforts. However, AI is still in its early stages, and finding practical use cases remains crucial. Baidu has been working on commercializing AI through dedicated departments and integrating it into core products.
Huawei’s massive smartphone market presents a valuable opportunity for Baidu. According to IDC, in Q3 2017, Huawei shipped 39.1 million smartphones, holding a 10.5% market share. While behind Samsung and Apple, Huawei has shown strong growth, even surpassing Apple in global sales rankings at times.
Yu Chengdong noted that Huawei is currently undergoing a transformation. Although its phone sales are high, profit margins remain low compared to Apple, which captures nearly 70% of the industry’s profits. To improve profitability, Huawei has focused on enhancing user experience and services, including launching its consumer cloud under new leadership. This marks a key step in expanding revenue beyond hardware sales.
Understanding user habits allows smartphones to become more like personal assistants, offering continuous AI-driven support. This makes them a natural fit for AI development. Huawei is determined to shape the future of mobile technology, having already introduced AI processors like the one in the Mate10. However, as Yu Chengdong pointed out, Huawei needs partners to fully realize its AI ambitions, and Baidu is a leading player in China’s AI landscape.
Considering the competitive environment, it becomes clear why Huawei partnered with Baidu. Other major players like Apple, Samsung, and vivo are also pushing AI in their devices. While Huawei aims to lead in market share, it still has a long way to go. Partnering with Baidu gives it a stronger edge in the evolving AI smartphone race.
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