China’s Huawei and Amazon in Patent Licensing Agreement 

People visit the Huawei stand at the 2024 Mobile World Congress (MWC) in Barcelona, Spain February 27, 2024. (Reuters)
People visit the Huawei stand at the 2024 Mobile World Congress (MWC) in Barcelona, Spain February 27, 2024. (Reuters)
TT

China’s Huawei and Amazon in Patent Licensing Agreement 

People visit the Huawei stand at the 2024 Mobile World Congress (MWC) in Barcelona, Spain February 27, 2024. (Reuters)
People visit the Huawei stand at the 2024 Mobile World Congress (MWC) in Barcelona, Spain February 27, 2024. (Reuters)

China's Huawei Technologies and US tech giant Amazon said they had signed a multi-year patent licensing deal that resolves litigation between them.

Most terms of the deal were not disclosed, but Alan Fan, head of Huawei's intellectual property rights department, said the Chinese firm had ended lawsuits brought against Amazon in Germany over patented technology related to wifi and video playback.

The United States has barred Chinese telecom companies from its market citing concerns about data, and designated Huawei and ZTE as threats, requiring US carriers to remove their equipment from US networks.

It has also prevented US firms from supplying Huawei with chips and other components, crippling its smartphone business.

Despite those tensions, the patent license deal shows "American and Chinese companies and companies from other regions are cooperating without limitations in standards and patent licensing," Fan said.

Huawei also announced it had signed a cross-licensing patent deal with domestic smartphone maker Vivo covering communication technologies including 5G. Huawei has similar patent agreements with Chinese smartphone manufacturers Xiaomi and Oppo.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
TT

Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.