Honor Device Co, the smartphone maker spun out from Huawei Technologies Co, is developing humanoid robots as part of its push into China’s crowded artificial intelligence arena.

The Shenzhen-based company’s department for new business opportunities has decided to go further with robotics including human-shaped machines, it said in a statement on Wednesday. It announced in March a $10 billion initiative to expand into new industries, with a focus on AI and novel applications.

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China is leading the way in humanoid robotics with a handful of promising startups that have recently raised their profile. Last month, Beijing hosted a robot half-marathon that was completed by only a few of the 21 robots that entered. Nvidia Corp chief Jensen Huang has said the field has the potential to turn into a trillion-dollar industry, especially in factories and warehouses designed for human workers.

Honor’s expansion into robots would mirror efforts by the likes of Xiaomi Corp, which has gotten into making electric vehicles and smart factories, to diversify away from commodity electronics. Like rivals Oppo and Vivo, Honor is building its own agentic AI services that will be integrated into its software for smartphones and other devices