Huawei Technologies reported a year-over-year decline in cloud computing revenue for 2025, according to its annual financial disclosures, as analysts pointed to growing competition from U.S. rivals in artificial intelligence infrastructure. However, the telecommunications giant noted that when including revenue from internal customers, its cloud segment showed modest growth.
The mixed results come amid heightened scrutiny of China’s AI capabilities relative to American firms like Microsoft Azure and Google Cloud. ‘Huawei’s cloud division has faced geopolitical headwinds and export restrictions that limited access to advanced chips,’ said a Hong Kong-based tech analyst who requested anonymity due to client relationships. ‘But their ability to grow internally suggests they’re pivoting to serve domestic demand.’
Industry data shows Chinese cloud providers collectively control about 15% of the global market, compared with 55% for U.S. firms. Huawei remains China’s second-largest cloud provider after Alibaba, with particular strength in government and telecom infrastructure projects.
Looking ahead, analysts suggest Huawei may benefit from China’s push for technological self-sufficiency. ‘The next phase will test whether Huawei can leverage its 5G expertise to build competitive AI training clusters without cutting-edge Western chips,’ said a report from the Center for Strategic and International Studies.