Huawei deactivates AI and cloud business group in restructuring

Change mirrors struggle to transition from hardware maker to service provider

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

ZHANG ERCHI and TIMMY SHEN, Caixin

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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