Case Study: Xiaomi’s AI Evolution


Xiaomi, initially recognized for its cost-effective smartphones, has now diversified into a broad tech company, spanning smart devices, AI, and even robotics. With the recent global decline in smartphone sales and intense competition from other Chinese manufacturers, Xiaomi has begun to pivot its focus on AI and related technologies. CEO Lei Jun has been vocal about Xiaomi’s dedication to infuse AI into its range of products and services, underlined by its substantial investments in R&D.

Key Takeaways

  • Xiaomi will annually invest 20 billion yuan ($2.76 billion) to integrate AI across its product range.
  • The company has revealed its large language model (LLM) “MiLM-6B” which has been benchmarked and evaluated for its prowess in the Chinese language.
  • On-device AI, as opposed to cloud-based AI, is a key strategy for Xiaomi, focusing on user data security.
  • Lei Jun has signaled that AI is crucial for Xiaomi’s future, with initiatives like AI LLM-upgraded voice assistant XiaoAi and the development of AI-equipped devices like CyberDog 2.

Deep Dive: Xiaomi’s AI Evolution


Rather than just follow trends, Xiaomi seeks to integrate AI deeply into user experiences, thereby maximizing efficiency and exploring new AI-related user scenarios. Xiaomi’s president, Lu Weibing, has emphasized the company’s intent to diversify AI applications within Xiaomi, without directly competing with models like OpenAI’s ChatGPT.


Xiaomi has made notable steps in its AI journey. Establishing an AI Lab Foundation Model team with over 1,200 AI specialists, launching its own LLM, “MiLM-6B”, and plans for on-device generative AI services indicate Xiaomi’s commitment. The company’s AI endeavors also extend to robotics, with the release of products like CyberDog 2, showing its integrated AI approach across products.


Xiaomi’s MiLM-6B has been impressively ranked on Chinese LLM benchmark tests, even outperforming some of its competitors in specific evaluations. Additionally, with a voice assistant like XiaoAi boasting 110 million monthly active users, the potential reach and application of their AI technology is evident.

Challenges and Barriers

The global smartphone market has experienced a downturn, with sales dropping significantly. This decline, combined with increasing competition from other Chinese tech giants, poses challenges for Xiaomi. Developing AI, especially LLMs, requires immense computing power and resources. Making these LLMs run effectively on devices without compromising performance remains a technical challenge. Moreover, as AI research and implementation are resource-intensive, ensuring a good return on investment is crucial for the company.

Future Outlook

Given Xiaomi’s significant annual R&D investment focus on AI, the company is poised to be a significant player in the AI-driven tech landscape. As Xiaomi continues to refine its on-device AI services, it will potentially pave the way for a new era of user interaction with devices, maintaining user data privacy and security. Collaborations and potential partnerships could also be on the horizon to further enhance its AI capabilities.


Xiaomi’s dive into the AI sphere is a testament to the company’s forward-thinking approach and adaptability. By addressing the current market needs and future tech trends, Xiaomi aims to cement its position not just as a smartphone manufacturer but as a global tech leader. Their focus on AI, coupled with massive R&D investments, showcases a promising trajectory for the company in the AI-dominated future.

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