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Huawei realigns its cloud unit to boost AI focus amid US-China tech tensions

August 25, 2025

Amid rising tech competition between China and the US, Huawei has kicked off a major reshuffle of its cloud computing division with a keen focus on artificial intelligence. This move sees the company pulling together its resources to better position itself in a rapidly evolving sector.

Internal sources and reports from Chinese media reveal that the realignment, which started on Friday, involves merging several key departments within the cloud unit. These groups handle everything from AI model development and cloud services to data centre solutions. Although two employees preferred to stay anonymous when discussing the changes, they hinted that while the precise number of affected staff remains unclear, many might transition into other roles within the organisation.

Speaking to National Business Daily, Huawei’s Cloud Business Unit explained that the aim is to create more advanced cloud services through closer software and hardware collaboration. This clear commitment to investing more significantly in AI and computing underscores the strategy behind the restructure.

Huawei’s cloud unit CEO, Zhang Pingan, communicated the plans internally, outlining a consolidation into six divisions covering areas such as computing, storage, database, and cybersecurity, as highlighted by Sina.com. This streamlined approach is seen as a step towards regaining profitability after last year’s setbacks.

While Huawei has yet to offer further comments, the restructuring illustrates its proactive measures to navigate the challenges of the ongoing tech rivalry between the US and China.

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