The AI industrial revolution is compelling telecommunications operators to undergo a transformative shift in their core identity. Recently, CHINA MOBILE announced the launch of the world's first AI-eSIM product. Traditional SIM cards and eSIMs are fundamentally communication tools, limited to providing connectivity. The AI-eSIM, however, is characterized by its integration of four core capabilities for device-side chips: an intelligent brain, a security foundation, computing power services, and communication connectivity.
For decades, the role of operators has been that of "road builders," responsible for transporting data traffic from base stations to mobile phones. In the AI era, however, CHINA MOBILE clearly has no intention of remaining merely a pipeline collecting tolls. Through the AI-eSIM, it is attempting to become the "computing power grid" and "cloud brain" for smart hardware. The logic behind this move is clear: since on-device computing power cannot keep up with the demands of large AI models, why not have the operator deliver cloud computing power and network connectivity directly to the device?
The Computing Power Business for Operators In the common understanding, an eSIM is simply the integration of a traditional SIM card into a chip. However, CHINA MOBILE's strategy with the AI-eSIM is evidently more profound. An analysis suggests that CHINA MOBILE is taking the lead in launching the AI-eSIM product primarily to align with the trend of AI and Internet of Things (IoT) integration, meeting market demand for convenient connectivity and intelligent interaction in smart devices.
According to CHINA MOBILE, a core highlight of this AI-eSIM is its ability to schedule cloud-based AI models in real-time, enabling devices to think autonomously and respond instantly. Through the convergence of network and cloud, CHINA MOBILE has deeply integrated communication modules with AI computing power, granting terminal devices inherent proactive thinking capabilities with lower interaction latency. An industry expert pointed out that the AI-eSIM enables devices to become "intelligent upon connection," representing an attempt by operators to transition from being pipelines to intelligent computing service providers.
In terms of practical application, CHINA MOBILE has identified several key initial scenarios for deployment, including AI toys and smart wearable devices. It is believed that with the rapid growth of AI toys, smart wearables, and a broad range of IoT devices, traditional SIM cards have limitations in remote management and flexible configuration. The AI-eSIM can effectively address pain points such as poor connection stability, complex configuration, and insufficient intelligence, thereby enhancing user experience and capturing first-mover advantage in emerging smart hardware markets.
Taking the currently popular AI glasses as an example, they naturally possess first-person perspective sensing capabilities. However, at the hardware level, they are consistently constrained by the "impossible triangle" balancing weight, battery life, and performance. A research report indicates that in the short term, AI glasses will serve as the interaction front-end, handling voice activation, visual perception, near-eye display, and scenario triggering, while AI smartphones will continue to act as the computational base and ecosystem hub. In the medium to long term, as low-power SoCs, Micro LED, optical waveguides, and independent connectivity mature, AI glasses may gradually evolve from an auxiliary interface into a more central platform.
The AI-eSIM not only solves the problem of independent connectivity for AI glasses but also acts as an "external brain," compensating for shortcomings in computing power and latency. If equipped with an AI-eSIM, when a user issues a command to AI glasses, significant improvements in both stability and response speed can be expected. An industry executive previously noted that in the past, smart glasses had to pair with a smartphone via Bluetooth, which did not offer an optimal user experience. Furthermore, strategically, for smart glasses to truly become the "next-generation phone," they need independence and cannot perpetually rely on smartphones.
Clearly, the AI-eSIM provides a crucial solution for enhancing the experience of smart glasses. However, the integration of cellular connectivity via the AI-eSIM will undoubtedly increase pressure on battery power consumption. For a long time, the most significant headache for operators has been "increasing volume without increasing revenue." Although the number of 5G users has risen year after year, the fate of being a mere pipeline has kept operators at the bottom of the value chain. In contrast, device manufacturers like Apple and Google, leveraging their operating systems and application ecosystems, capture the vast majority of industry profits.
CHINA MOBILE's pioneering move with the AI-eSIM targets the pain point of small, endpoint devices having insufficient local computing power for high-level intelligence. By equipping these small devices with a "shared cloud brain," it aims to open up new growth avenues for its own business.
The Inevitable Path Following Massive Investment Behind any strategic move lies a calculation of return on substantial investment. Over the past few years, operators have made significant investments in computing infrastructure. From East-West computing hubs to edge data centers spread across the country, CHINA MOBILE has accumulated vast computing resources. In 2025, CHINA MOBILE accelerated the deployment of its computing power network, with total AI computing scale reaching 92.5 EFLOPS (FP16), achieving full-range computing capabilities from hundreds to tens of thousands of accelerator cards. Simultaneously, it perfected a three-tier latency circle for computing power: 1 millisecond within metropolitan areas, 5 milliseconds within provinces, and 20 milliseconds nationwide. Its inter-provincial backbone 400G OTN network achieved near-complete national coverage, with externally serviced IDC standard racks exceeding 1.5 million.
Against the backdrop of plateauing growth in traditional communication services, computing services have now joined communication services and intelligent services as one of CHINA MOBILE's three main business pillars. CHINA MOBILE's Chairman recently stated publicly that the company will strengthen its capabilities in integrated innovation and service delivery across communication, computing power, and intelligence, while enhancing the supply of AI computing centers and cloud services. In its disclosed 2025 financial results, CHINA MOBILE explicitly reported its computing service revenue for the first time, achieving annual revenue of 89.8 billion yuan, an increase of 11.1% year-on-year.
How to utilize this massive computing power and convert it into sustainable commercial revenue is the most pressing issue facing CHINA MOBILE and other operators. Analysis suggests that within CHINA MOBILE's AI strategy, the AI-eSIM is a crucial component. It not only enhances its intelligent connectivity service system but also facilitates the output of computing services. Through cloud-device collaboration, computing resources are empowered across various smart terminals.
CHINA MOBILE's current launch of the AI-eSIM represents a proactive approach: rather than waiting for third-party applications to rent computing power, it is packaging computing power directly into communication modules for sale. When an AI-eSIM chip is embedded into an AI toy or a pair of AI glasses, CHINA MOBILE is no longer selling just a plan comprising data and call minutes, but rather a subscription agreement encompassing "connectivity + computing power + model services."
An expert also pointed out that the AI-eSIM brings innovation to markets like AI toys and smart wearables. For instance, the token account built into the AI-eSIM supports billing based on computing power consumption. CHINA MOBILE can sell tokens bundled to customers, which not only generates additional revenue streams but also promotes a shift in the AI hardware business model from one-time hardware sales to earning ongoing AI subscription fees.
This shift is systemic. In the second half of 2025, China's three major telecom operators all launched eSIM subscription services. By 2026, this support has evolved from merely providing internet access to enabling intelligence upgrades. Taking a broader view, the AI-eSIM also represents CHINA MOBILE's strategic positioning for the "next generation of smart terminals." Once smart glasses, smartwatches, and even AI toys can operate independently of smartphones, user reliance on communication terminals will shift. When hardware is no longer an accessory to the phone, operators can leverage the AI-eSIM to adapt to this hardware evolution.
Future business models are likely to be reconfigured accordingly. In this era where computing power equates to influence, CHINA MOBILE's AI-eSIM is set to instigate a top-down restructuring of the rules within the entire hardware industry chain, redefining how smart terminals connect, how computing power is allocated, and how commercial value is distributed.