Lenovo earmarks US$1.2 billion for AI research and development
Computer giant also stepping up transformation at its underperforming mobile and data-centre businesses to drive sustainable profit growth
Chinese technology giant Lenovo Group is upping its ante on artificial intelligence (AI) by earmarking at least US$1.2 billion to beef up research and development in this field, as it predicts drastic changes to personal computers and consumer electronic devices over the next three to four years.
Yang Yuanqing, the chairman and chief executive of the world’s second-largest personal computer supplier, said on Thursday that computers, mobile phones and other electronic devices would not survive unless these are based on systems that make them “smarter”.
“Sales of PCs and other devices will go downhill if AI technologies are not used properly to meet consumer demand,” Yang told the South China Morning Post.
Sales of PCs and other devices will go downhill if AI technologies are not used properly to meet consumer demand
“AI is priceless and is certain to bring a sea change to all production lines in the PC industry.”
He emphasised that the US$1.2 billion research and development budget over the next four years was “the minimum amount” Lenovo plans to invest, as it anticipates smart technologies and cloud services to effectively be integrated into various consumer electronics products.
Lenovo, which has operations in more than 160 countries, returned to profit for its fiscal year ended in March, reporting net profit of US$535 million, compared with a US$128 million loss the previous year.
Rui Yong, Lenovo’s chief technology officer, said the company was rapidly transforming itself from being a purely computer hardware and device maker, into a provider of cloud services.