Huawei and Qualcomm sign a multi-year patent licensing agreement covering 5G and AI technologies.

Huawei and Qualcomm have signed a multi-year patent licensing agreement covering 5G, artificial intelligence, computing, and network technology. The deal grants both companies access to portions of each other's patent portfolios. This marks the first licensing agreement between the two firms to include 5G technology.

Both companies are adhering to FRAND principles, which require licenses for standard-essential patents to be available on fair, reasonable, and non-discriminatory terms.

As part of the agreement, Qualcomm will acquire a number of Huawei's U.S. patents in areas including AI, computing, and network technology. Financial details of the patent acquisition have not been disclosed, and the transaction remains subject to approval by relevant regulatory authorities.

According to Reuters, Huawei expects the total value of its patent licensing agreements to exceed $6.9 billion once the deal is finalized. The company has been making a net profit from licensing intellectual property since 2021, reflecting its substantial investment in research and development over many years. This shift toward licensing revenue has become increasingly important following U.S. trade restrictions imposed beginning in 2019, which limited Huawei's access to advanced chips and certain software.