Huawei’s cloud slips as AI race exposes performance gap

Huawei reported a 3.5% drop in external cloud revenue for 2025, signaling pressure as AI-driven demand reshapes the market. While overall cloud figures held up through internal usage, slower growth in its core infrastructure business highlights mounting challenges. As rivals accelerate with AI workloads, Huawei faces increasing scrutiny over whether its in-house chips can keep pace in a rapidly evolving cloud landscape.