BEIJING: Xiaomi is making a big investment in artificial intelligence (AI) to strengthen its future business. The company recently launched its new AI model called MiMo-V2.5-Pro.
According to benchmark platform Artificial Analysis, the model is one of the best open-source AI systems in the world for handling complex tasks automatically. Xiaomi started releasing open-source
AI models is already competing with major Chinese AI companies like Deep Seek and Moonshot AI.
The company plans to spend more than 60 billion yuan on AI over the next three years. Analysts believe this move will help Xiaomi stay competitive as AI becomes more important in smartphones, cars, and smart devices.
Experts say Xiaomi does not need to beat pure AI companies. Instead, it wants to make sure its products are ready whenever new AI technology becomes useful for hardware devices.
Xiaomi CEO Lei Jun said AI is a major opportunity for the company. He explained that Xiaomi’s “Human × Car × Home” system connects phones, cars, and home products together.
Xiaomi now sells many products, including smartphones, smart home devices, and rice cookers, which gives the company a strong ecosystem for AI integration.
The company has also become successful in the electric vehicle market. In early 2024, Xiaomi launched its first electric sedan, the SU7.
The car received strong interest in China because of its modern design and smart software features. Xiaomi also introduced smart glasses that can show navigation information while driving. Later, the company launched the YU7 SUV model.
Last year, Xiaomi delivered more than 410,000 vehicles. This was a huge increase compared to 136,000 vehicles in 2024. The company’s EV sales are now close to major Chinese EV makers such as Xpeng, Nio, and Li Auto.
Experts say China’s strong EV supply chain and Xiaomi’s experience in smartphone manufacturing helped the company enter the EV market quickly.
Xiaomi is also developing its own chips. Its XRing O1 chip is used in premium products like the Xiaomi 15S Pro smartphone and Xiaomi Pad 7 Ultra tablet.
The company said the chip performs better than some of Apple’s latest chips in certain tests. Xiaomi believes building its own chips will improve product performance and reduce dependence on other suppliers.
However, analysts warn that Xiaomi’s large investments could take many years to deliver profits. The company plans to spend around 200 billion yuan on research and development over the next five years.
Even so, experts believe Xiaomi’s focus on AI, EVs, and chips is necessary for long term growth and survival in the technology industry.
