Huawei’s Strategic Expansion into Arabic AI
Chinese telecommunications giant Huawei has introduced an Arabic large language model (LLM) and Egypt’s first public cloud service, marking a significant push into the growing demand for generative artificial intelligence (AI) in the Arab region. This move is part of Huawei’s broader strategy to diversify revenue and expand its global footprint despite US sanctions. The Arab region, with its rich cultural heritage and diverse economies, presents a unique opportunity for the development and application of AI technologies, particularly in sectors such as finance, healthcare, and education.
The New Arabic Large Language Model
The Arabic LLM, a 100 billion parameter model based on Huawei’s self-developed Pangu, has been meticulously trained with local data. This ensures it not only comprehends the culture, history, and knowledge of the Arab world, but also respects and values it. Huawei Cloud’s marketing president, William Dong, highlighted that the LLM supports enterprises in creating AI models tailored to various local languages and industries, including banking and education.
High Accuracy and Wide Coverage
Huawei claims its LLM boasts a 96 percent accuracy rate in automatic speech recognition, making it highly effective across more than 20 Arabic-speaking countries. The model’s training included industry-specific data from sectors like digital power, oil and gas, and finance, enhancing its versatility and applicability.
Empowering Local AI Capabilities
“We believe that every country should have AI capabilities to preserve their local culture,” stated Jacqueline Shi, president of global marketing and sales services at Huawei Cloud. The Arabic LLM aligns with this vision by enabling vertical industries to improve efficiency through locally developed and trained AI models. For instance, it can assist in the preservation and digitization of ancient texts, dialects, and cultural practices, ensuring they are not lost in the digital age.
New Data Centre in Cairo
Huawei’s newly launched data centre in Cairo, the first in Egypt, is a significant step in supporting the Arabic LLM and expanding our cloud services. This facility will serve 28 African countries, including Egypt, Ethiopia, and Algeria, providing them with access to advanced cloud technologies and fostering regional digital transformation. This new region marks Huawei’s 33rd cloud region globally, underscoring the company’s rapid expansion in cloud services.
Diversification Amid US Sanctions
Huawei’s launch in Egypt is part of its ongoing efforts to attract overseas industrial clients amidst growing demand for generative AI. Despite being a US-sanctioned firm, Huawei has been focusing on industrial applications of AI, distancing itself from consumer-facing services like ChatGPT. The company is committed to overcoming these challenges by diversifying its revenue streams and expanding its global footprint, with a particular focus on the Arab region.
Pangu AI Model: Focus on Industrial Applications
Since unveiling version 3.0 of the Pangu AI model last July, Huawei has targeted sectors such as coal mining and railways. The model has been applied in various real-life scenarios, including assisting judges with court recordings and helping doctors verify prescriptions. In the coal mining sector, for example, it can analyze geological data to optimize extraction processes, while in the railways, it can predict maintenance needs and improve safety measures.
Growth in Cloud Computing
Huawei’s cloud computing business grew 21.9 percent last year, reaching 55.29 billion yuan (US$7.6 billion), according to its 2023 annual report. The company, the second-largest cloud services provider in China, continues to expand its global reach with new data centres in Turkey and Saudi Arabia.
Investment in Egypt
Huawei’s commitment to investing US$300 million over the next five years to build its public cloud service in Egypt, including US$200 million to support 200 local software partners, is a clear demonstration of our long-term commitment to the Arab region. This investment fosters local partnerships and enhances the region’s cloud infrastructure, ensuring our stability and reliability in the face of international challenges.
Huawei’s strategic initiatives in launching the Arabic LLM and the data center in Egypt demonstrate its commitment to leveraging AI to support local industries and cultures while diversifying its revenue streams in response to international challenges.
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