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Speaker 1: Huawei, and it's disclosing for the first time it's annual

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Speaker 1: income from its patent licensing deals, showing the company is

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Speaker 1: making in well more than five hundred and sixty million

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Speaker 1: dollars last year from the part of the business. After

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Speaker 1: of course, this business model of old was kind of

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Speaker 1: upended by US sanctions of the Chinese tech player joining us.

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Speaker 1: Now to see how this galvanizes growth for the future,

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Speaker 1: Stephen guys this with us. He's a US Chief Intellectual

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Speaker 1: Property Council a Huawei as long as Anni Perdy's Huawei

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Speaker 1: USA Cso, gentlemen, both great to have you, Stephen. Just

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Speaker 1: a lot of patents thousands that Huawei has. How do

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Speaker 1: you ultimately look to monetize all of this? You've been

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Speaker 1: launching this licensing website as well. Just in the last

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Speaker 1: few days, you're providing details of how you're going to

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Speaker 1: have bilateral licensing programs. Do you sell to Apple and

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Speaker 1: the like? Even within these sanctions? How this sort of

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Speaker 1: conversations go with big tech giants well.

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Speaker 2: So, regardless of Huawei's sales, our patent portfolio covers many

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Speaker 2: of the telecommunications products globally. So for instance, in five

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Speaker 2: G alone, we own a proximately twenty percent of all

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Speaker 2: standard essential patents globally for five G. So where our

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Speaker 2: competitors or other marketing entrants are using five G technology,

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Speaker 2: they would need to pay for a license from Huawei.

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Speaker 2: We're not, though, primarily concerned with monetizing making revenue. In fact,

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Speaker 2: one of the drivers of releasing the number five hundred

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Speaker 2: and sixty million dollars in revenue last year from patent

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Speaker 2: licensing was to show that in the grand scheme of

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Speaker 2: things within Huawei, that patent licensing is not our business emphasis.

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Speaker 2: Certainly my team, we're proud of the work that we've

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Speaker 2: done globally in licensing, and for two years straight we've

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Speaker 2: been positive in patent licensing. But Huawei certainly is a

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Speaker 2: product and services company. So this is transparency to allow

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Speaker 2: people to see within context that it still is the

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Speaker 2: productization that Huawei is driving for and therefore.

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Speaker 1: Help must define what Huawei is now because in many

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Speaker 1: ways you have pivoted. You were a survival mode. Now

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Speaker 1: it's more focused on B to B. How do you

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Speaker 1: summarize really what JAWE stands for now?

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Speaker 3: Well, we are now at a new normal phase of

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Speaker 3: the evolution of this company. The context is there's technologies converging,

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Speaker 3: five G software, cloud centered technologies, artificial intelligence, all these

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Speaker 3: things are converging. So our strategy with an incredible investment

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Speaker 3: in R and D. We now have one hundred and

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Speaker 3: fourteen thousand people in R and D out of our

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Speaker 3: two hundred and eight thousand dollars two hundred and eight

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Speaker 3: thousand employee mixture. So we've been adjusting our portfolios to

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Speaker 3: bring value to the network carriers, the enterprises, to the consumers,

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Speaker 3: embracing the key trends of digitalization, intelligence and carbon neutrality,

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Speaker 3: helping to reduce the carbon footprint. So we are a

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Speaker 3: company about connecting the world, about bringing technology to every home,

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Speaker 3: every company, every organization, and frankly, it's really exciting to

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Speaker 3: be a member of this of this company.

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Speaker 1: Manny is hard and you know this while having worked

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Speaker 1: with the White House prior to Huawei to do this,

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Speaker 1: while navigating such sanctions, do you ever see a world

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Speaker 1: in which that will be alleviated in this current gy

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Speaker 1: of political environment.

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Speaker 3: Well, there's an awful lot of countries in the world

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Speaker 3: that are eager to do business with US, and thousands

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Speaker 3: of companies to partner with US, and in fact, when

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Speaker 3: you look at the world, we have formed digitalization partnerships

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Speaker 3: and Global Fortune five hundred companies with two hundred and

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Speaker 3: sixty seven of the Global Fortune five hundred and seven

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Speaker 3: hundred cities. So we're not so concerned about what we

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Speaker 3: can't do. We're excited about what we can do and

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Speaker 3: how we're bringing the technology to the world, including five

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Speaker 3: point five G and including our Pangu AI and AI

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Speaker 3: for industry approach, which is I think going to generate

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Speaker 3: quite a bit of revenue.

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Speaker 1: Okay, I like that you went to the AI. How

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Speaker 1: much focus is there on AIIP at the moment.

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Speaker 2: Stephen, Well, I'll defer to Andy on the AI.

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Speaker 3: So our company looks at the larger world where the

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Speaker 3: future of computing is everywhere. There's going to be an

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Speaker 3: intelligent world. There's going to be Internet of everything, and

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Speaker 3: five G and increasingly five point G are going to

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Speaker 3: help bring that about. We think artificial intelligence is going

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Speaker 3: to rewrite everything, and so our lead for Huawei Cloud,

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Speaker 3: for example, Zang King Ghan has said the Pengu model

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Speaker 3: of AI is not about writing poetry. It's not generative

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Speaker 3: AI like the most publicity and these models. The Pegu

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Speaker 3: model empowers every industry with the ineffect and intelligence system

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Speaker 3: to make them more productive, more efficient in a real

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Speaker 3: learning environment. Frankly, when we look at the future, we

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Speaker 3: believe ken who our vice chairman, has said that when

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Speaker 3: you look at AI, generally, ninety eight percent of AI

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Speaker 3: will be industry in some agriculture and only two percent

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Speaker 3: will be consumer. So hopefully the United States is going

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Speaker 3: to really get all in about the benefits of digitalization

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Speaker 3: and transformation sunny.

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Speaker 1: So it feels that way when in terms of the

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Speaker 1: level of conversation we have here on the show about

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Speaker 1: AI in the US, we want to thank you both

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Speaker 1: Steven Geisler of course US Chief Intellectual Property Counsel at

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Speaker 1: Huawei and any Perdy Huiwei USA CSO