Xiaomi To Invest $8.7 Billion Over Three Years On AI
Synopsis
The company will invest at least 60 billion yuan ($8.7 billion) in artificial intelligence over the next three years, its biggest spending pledge on A.I. so far, Xiaomi’s chief executive Lei Jun said on Thursday. The news followed the official reveal of MiMo-V2-Pro02, an AI model that quietly made its way onto developer platform OpenRouter a week prior and had processed over 1.5 trillion tokens. Shares of Xiaomi surged almost 6% in Hong Kong. The automaker is developing AI for its smartphones, smart home devices and latest SU7 electric car, which has a starting price of 219,900 yuan.
Xiaomi will spend $8.7 billion on AI over three years. It will release a new A.I. model, MiMo-V2-Pro which became an instant sensation on developer portals. After the announcements, the company’s shares increased about 6% in Hong Kong.
Key Highlights
- Xiaomi plans to invest 60 billion yuan in AI over three years.
- The company will also invest more than 16 million into their own AI research in 2026.
- MiMo-V2-Pro has processed 1.5 trillion tokens and is skyrocketing up the global developer rankings
Xiaomi Makes Its Biggest AI Spending Pledge Yet
Xiaomi’s chief executive, Lei Jun, said on Thursday that the company would invest about 60 billion, roughly $8.7 billion in AI over three years. He announced the move during a company event in Beijing.
Lei also disclosed that the budget for Xiaomi’s AI research in 2026 exceeded 16 billion yuan, higher than previously planned. This is Xiaomi’s biggest public commitment to AI so far. It positions the company directly in line with Alibaba, Baidu and other large Chinese tech firms that are pouring money into keeping up in the AI arms race.
The New AI Model That Quietly Went Viral
The spending announcement was made on the same day Xiaomi announced its new AI model, MiMo-V2-Pro. What was unusual about the launch was that the model was already available, it had been uploaded, to a platform called OpenRouter. Which meant developers were able to use it before Xiaomi revealed it publicly.
The model has been trained on over 1.5 trillion tokens already, a sure sign that developers across the globe are getting up to speed with it quickly. MiMo-V2-Pro is designed for what the industry calls agentic AI, meaning it can independently complete tasks rather than just answer questions. An associated product with a similar purpose, Miclaw, is already being tested by Xiaomi; it functions as an AI agent that can operate directly on a mobile phone.
Goldman Sachs Supports the Strategy but Raises Profit Concerns
Analysts at Goldman Sachs weighed in after the announcements. New model launches could reinforce Xiaomi’s position in foundation model development, they said, but heavier research spending could weigh on profits in the near term. If Xiaomi delivers consistently, the market would gradually start to value the company’s long-term AI capability more seriously, they added.
Xiaomi’s stock gained 5.8% in Hong Kong on Thursday and was the best performer on the Hang Seng Tech Index, while the index overall dropped more than 2% on the day.
Xiaomi Is Adding A.I. to Phones, Cars and Smart Home Devices
Xiaomi’s AI gamble isn’t all about models and research budgets, though. The company wants artificial intelligence in every product it builds. This year, for the first time, it will combine an integrated device with its XRing O1 smartphone chip and also its HyperOS operating system and AI assistant, initially only in China before global rollout.
The company has further updated its SU7 electric vehicle which brings an equivalent range of up to 900 kilometres, improved driver assistance features as well as added sensors. The revised SU7 now starts at 219,900 yuan, which is less than its previous pre-sale price of 229,900 yuan.
FAQs
- What is MiMo-V2-Pro?
Xiaomi’s new AI is based on agentic AI capabilities. It was surreptitiously uploaded on some sort of developer platform a week before it launched officially, and has so far processed 1.5 trillion tokens.
- Why did Xiaomi's shares jump?
Investor confidence was boosted after the AI investment commitment and new model launch, driving shares up nearly 6% in Hong Kong.
- What is Xiaomi integrating AI into?
Smartphones, smart home devices and its SU7 electric vehicle, all powered by its own chip, operating system and AI assistant.
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