China's Huawei open-sources AI models as it seeks adoption across the global AI market
Financial News
CNBC

China's Huawei open-sources AI models as it seeks adoption across the global AI market

July 1, 2025
08:49 AM
4 min read
AI Enhanced
financetechnologytelecommunicationsmarket cyclesseasonal analysisgeopolitical

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Huawei has open-sourced more of its AI models. Tech experts say it'll help the U.S.-blacklisted company continue to expand throughout the AI ecosystem.

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financial news

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July 1, 2025

08:49 AM

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CNBC

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financetechnologytelecommunicationsmarket cyclesseasonal analysisgeopolitical

Huawei announced on Monday the open-sourcing of two of its AI models under its Pangu series, as well as some of its model reasoning nology

According to AI and experts, the move is expected to incentivize the use of other Huawei ducts, such as its Ascend AI chips

In recent years, the company has transformed from a competent private sector telecommunications firm into a "muscular nology juggernaut straddling the entire AI hardware and software stack," said Paul Triolo, partner and senior vice president for China at advisory firm DGA-Albright Stonebridge Group

Ramon Costa | SOPA Images | Lightrocket | Getty ImagesHuawei has open-sourced two of its artificial intelligence models — a move experts say will help the U. -blacklisted firm continue to build its AI ecosystem and expand overseas

The Chinese giant announced on Monday the open-sourcing of the AI models under its Pangu series, as well as some of its model reasoning nology

The moves are in line with other Chinese AI players that continue to push an open-source development strategy

Baidu also open-sourced its large language model series Ernie on Monday

Experts told CNBC that Huawei's announcements not only highlight how it is solidifying itself as an open-source LLM player, but also how it is strengthening its position across the entire AI value chain as it works to overcome U. -led AI chip export restrictions

In recent years, the company has transformed from a competent private sector telecommunications firm into a "muscular nology juggernaut straddling the entire AI hardware and software stack," said Paul Triolo, partner and senior vice president for China at advisory firm DGA-Albright Stonebridge Group

In its announcement Monday, Huawei called the open-source moves another key measure for Huawei's "Ascend ecosystem strategy" that would help speed up the adoption of AI across "thousands of industries. "The Ascend ecosystem refers to AI ducts built around the company's Ascend AI chip series, which are widely considered to be China's leading competitor to ducts from American chip giant Nvidia

Nvidia is restricted from selling its advanced ducts to China

Pangu being available in an open-source manner allows developers and es to test the models and customize them for their needs, said Lian Jye Su, chief analyst at Omdia. "The move is expected to incentivize the use of other Huawei ducts," he added

According to experts, the coupling of Huawei's Pangu models with the company's AI chips and related ducts gives the company a unique advantage, allowing it to optimize its AI solutions and applications

While competitors Baidu have LLMs with broad capabilities, Huawei has focused on specialized AI models for sectors such as government, finance and manufacturing. "Huawei is not as strong as companies DeepSeek and Baidu at the overall software level – but it doesn't need to be," said Marc Einstein, re director at Counterpoint Re. "Its objective is to ultimately use open source ducts to drive hardware sales, which is a completely different model from others

It also collaborates with DeepSeek, Baidu and others and will continue to do so," he added

Watch now2:3902:39Nvidia CEO: Huawei ‘has got China covered’ if the U

Doesn’t participateSquawk on the StreetRay Wang, principal analyst at Constellation Re, said the chip-to-model strategy is similar to that of Google, a company that is also AI chips and AI models its open-source Gemma models

Huawei's announcement on Monday could also help with its international ambitions

Huawei, along with players Zhipu AI, has been slowly making inroads into new overseas

In its announcement Monday, Huawei invited developers, corporate partners and reers around the world to download and use its new open-source ducts in order to gather back and imve them. "Huawei's open-source strategy will resonate well in countries where enterprises are more price-sensitive as is the case with [Huawei's] other ducts," Einstein said

As part of its global strategy, the company has also been looking to bring its AI data center solutions to new countries.