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Caixin

Huawei deactivates AI and cloud business group in restructuring

Change mirrors struggle to transition from hardware maker to service provider

A Huawei employee told Caixin that cloud services were still behind those of rivals due to their late rollout.   © Reuters

Chinese telecom giant Huawei Technologies is closing its core cloud and artificial intelligence business group after only 14 months, reflecting the company's difficulty in transforming from device-maker to service provider.

Group activities will be split into two units, Huawei announced in an April 2 internal memo. Server and hardware storage operations will be assumed by Huawei's internet products and solutions department, which will be responsible for product research and development.

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