Lenovo to invest further $1b in AI innovation

Chinese tech company Lenovo Group Ltd said it will invest an additional $1 billion over three years to accelerate artificial intelligence deployment for businesses around the world, - specifically AI devices, AI infrastructure, and AI solutions.

The plan came after the company said it recorded revenue of $12.9 billion and net income of $191 million on a non-Hong Kong Financial Reporting Standards in the quarter ended in June.

Revenue from the non-PC businesses accounted for 41 percent of Lenovo's overall revenue, with the service-led business achieving strong growth and sustained profitability – further demonstrating the effectiveness of Lenovo's intelligent transformation strategy, the company said.

Yang Yuanqing, chairman and CEO of Lenovo, said last quarter, the macro environment presented challenges, and the company's hardware business remained in a phase of adjustment, but Lenovo persisted in executing its strategy.

"Our service-led business achieved strong growth and sustained profitability. Our non-PC revenue mix of the group revenue further increased year on year – demonstrating the effectiveness of our diversified growth engines and I remain cautiously optimistic about our business recovery over the next several quarters," Yang said.

"As we continue to drive innovation and intelligent transformation, I'm confident in the long-term position to deliver sustainable profitability and growth in the future," Yang added.

Lenovo said breakthroughs in large language models and AI-generated content mark a major leap in AI development and application and serve as a catalyst and accelerator that are boosting the adoption of AI.

Over the next three years, Lenovo is committing a further $1 billion in investment for AI that will focus on providing AI devices, AI-ready and AI-optimized computing infrastructure, and embedded AI generated content into the intelligent solutions of vertical industries to help customers improve their productivity, the company added.