Chinese smartphone company Oppo ranks second in mainland China, and fourth worldwide, according to Canalys.
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BEIJING — Chinese smartphone company Oppo is doubling down on artificial intelligence as it holds weekly talks about AI with senior management at Google and Microsoft in the run-up to the launch of its flagship phone overseas.
The collaborations are part of the race to find the next artificial intelligence application. The rise of generative AI — tech that can produce human-like responses when prompted — has companies from Apple to Honeywellrushing to tap its capabilities.
“Google will also come to China to ask us, what needs and pain points do you have with your products? Let’s solve them together,” Billy Zhang, president of Oppo’s overseas market, sales and services, told reporters last week at the company’s office in the southern Chinese city of Shenzhen. That’s according to a CNBC translation of his Mandarin-language remarks.
“We know consumers’ needs, and we will use AI to satisfy [them],” Zhang said. The company is expanding further in Europe, but does not have immediate plans for the U.S., he said.
Oppo, which owns the OnePlus brand too, said itderives around 60% of its revenue from Southeast Asia, Europe and other overseas markets. The company ranked fourth globally in terms of smartphone shipments in the third quarter, making up 9% of all units shipped, according to Canalys. Samsung and Apple were tied for the first spot, followed by Xiaomi.
While the U.S. leads in terms of AI capabilities, experts suggest Chinese companies will have an edge when it comes to consumer applications of the tech. That’s despite U.S. restrictions on exports of high-end chips to China.
It was not immediately clear to what extent existing Oppo models use AI tools from the two tech companies. Oppo has yet to announce when its flagship phone will be available globally.
In addition to partnerships, Oppo said it has developed its own AI models since 2020 and opened an AI center in February.
“We are very optimistic about AI and have invested with great determination,” Zhang said. “AI is the most important area for tech in the future. All industries can be transformed by AI.”
Counterpoint Research predicts shipments of generative AI smartphones will skyrocket to 732 million in 2028 from 46 million last year, according to a whitepaper published Wednesday. The report did not specify how complex those generative AI features would be.
Apple next week is due to publicly release its first software update with AI tools. A subsequent update will allow removing unwanted elements in photos, and integration with ChatGPT, the iPhone maker said Wednesday.
Chinese smartphone company Honor on Wednesday revealed the next version of its operating system that can use AI to mimic actions on a touchscreen, such as opening an app to order coffee delivery.
Tech for production efficiency
Oppo plans to integrate AI into its factories, which are increasingly automated, Zhang said. “Today, automation improves quality and stability, lowers production costs and increases unit yield.”
At a production line for an entry-level smartphone in Dongguan, near Shenzhen, Oppo has this year replaced about 8% of the workers with machines, and moved those employees to work on more complex, higher-end phones.
Oppo is rolling out its digital management system to its factories in seven other countries, starting with India and Indonesia. The company also produces phones in Turkey, Pakistan, Bangladesh, Brazil and Egypt.
“Since our manufacturing process is largely digitalized and standardized, growing and expanding to global markets is much easier,” Danny Du, director of manufacturing management at Oppo told CNBC.
Oppo has cut its manufacturing costs by nearly 40% over three years, Du said, adding that technological integration with factory machines and systems has cut production time to six days, from 16. He said that allows Oppo to respond more quickly to market orders, instead of relying on longer-term forecasts that come with the risk of unsold inventory.
— CNBC’s Kif Leswing and Eric Rosenbaum contributedto this report.
Dario Amodei, Anthropic CEO, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 21st, 2025.
Gerry Miller | CNBC
Anthropic is in talks to raise a $3.5 billion funding round, significantly more than the amount previously expected, CNBC has confirmed.
The round would roughly triple the artificial intelligence startup’s valuation to $61.5 billion, according to two sources familiar with the deal, who asked not to be named because the details aren’t public. Lightspeed Ventures is leading the funding, with participation from General Catalyst and others, the sources said.
The financing, which was first reported by the Wall Street Journal, signals continued investor demand for top-tier AI companies, even in the face of potential disruption from China’s DeepSeek. Anthropic is backed by Amazon and Google, and had initially set out to raise $2 billion, according to a source.
Anthropic declined to comment.
The company’s last private market valuation was $18 billion. Amazon has poured $8 billion into the startup.
Anthropic was founded by early OpenAI employees and is the creator of the popular chatbot Claude. Earlier Monday, Anthropic released what it says is it’s “most intelligent AI model yet. Its so-called hybrid model combines an ability to reason — or stopping to think about complex answers — with a traditional model that spits out answers in real time.
JPMorgan Chase CEO Jamie Dimon on Monday said the U.S. government is inefficient and in need of work as the Trump administration terminates thousands of federal employees and works to dismantle agencies including the Consumer Financial Protection Bureau.
Dimon was asked by CNBC’s Leslie Picker whether he supported efforts by Elon Musk’s Department of Government Efficiency. He declined to give what he called a “binary” response, but made comments that supported the overall effort.
“The government is inefficient, not very competent, and needs a lot of work,” Dimon told Picker. “It’s not just waste and fraud, its outcomes.”
The Trump administration’s effort to rein in spending and scrutinize federal agencies “needs to be done,” Dimon added.
“Why are we spending the money on these things? Are we getting what we deserve? What should we change?” Dimon said. “It’s not just about the deficit, its about building the right policies and procedures and the government we deserve.”
Dimon said if DOGE overreaches with its cost-cutting efforts or engages in activity that’s not legal, “the courts will stop it.”
“I’m hoping it’s quite successful,” he said.
In the wide-ranging interview, Dimon also addressed his company’s push to have most workers in office five days a week, as well as his views on the Ukraine conflict, tariffs and the U.S. consumer.
Check out the companies making headlines in midday trading: Berkshire Hathaway — Class A shares of Warren Buffett’s conglomerate jumped nearly 4% following a strong earnings report . The conglomerate said its operating profit skyrocketed 71% to $14.5 billion in the fourth quarter, led by a 302% jump in insurance underwriting. Auto insurer Geico had the most positive effect on Berkshire’s insurance results. Meta Platforms — The Facebook parent company slipped more than 1% and was on pace for a fifth straight down day. Meta has dipped roughly 10% over the past five sessions, which marks its longest losing streak since August. Palantir — Shares tumbled 8.7% on Monday, on track for its fourth straight down day. The retail investor favorite has recently shown signs of fizzling , with shares down more than 24% compared with where they traded five sessions ago. Domino’s Pizza — The pizza chain pulled back 2% after fourth-quarter results missed analysts’ expectations. Domino’s reported earnings of $4.89 per share on revenue of $1.44 billion, while analysts polled by FactSet were looking for $4.90 per share on revenue of $1.48 billion. Same-store sales, a key metric for restaurants, also grew less than anticipated. Alibaba — The Chinese e-commerce giant plummeted 9%, reversing some of the 15.3% gain it saw last week following a better-than-expected earnings report . The move lower comes despite Morgan Stanley upgrading the stock to overweight from equal weight this week, with the firm citing accelerating cloud revenue growth as a catalyst. Robinhood — The brokerage stock fell more than 2% on Monday, putting it on track for its fifth straight losing session. Last week, Robinhood was downgraded by Wolfe Research to peer perform from outperform, and two corporate insiders disclosed recent stock sales. Nike — The clothing and footwear stock gained more than 4% after Jefferies upgraded Nike to buy from hold, and said the company is turning “back on its innovation engine.” Freshpet — The pet food stock advanced more than 8% after an upgrade to buy from hold from Jefferies, with the firm asserting that shares are “worth 50% above” where they are trading currently. The firm added that it expects Freshpet can grow sales 23% by 2027. Rivian — Shares tumbled nearly 8% after Bank of America downgraded the electric vehicle maker to underperform from neutral. Analyst John Murphy pointed to mounting competitive pressures, a softer-than-expected 2025 outlook and slowing EV demand alongside a potential pullback in U.S. EV incentives as reasons for the downgrade. Energy stocks — Power company stocks were lower on the heels of the a TD Cowen report last week concerning data centers and Microsoft. Analyst Michael Elias said Microsoft had “cancelled leases in the U.S. totaling ‘a couple of hundred MWs’ with at least two private data center operators.” Talen Energy and GE Vernova pulled back 2% each, while Vistra dropped nearly 4%. Constellation Energy shed about 7%. — CNBC’s Yun Li, Alex Harring, Lisa Kailai Han, Jesse Pound and Sean Conlon contributed reporting.