$7.18 Billion For AIot in Next Five Years: Xiaomi Founder Lei Jun

  • Xiaomi has been focusing on its AIot+smartphone strategy since the beginning on 2019
  • The number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform, till March 2019, were approximately 171 million units

Xiaomi has increased the amount of investment it is going to make on 5G, AI, IoT and next generation super internet. The China-based company, instead of investing $1.43 billion, is now gong to invest around $7.18 billion, on these during the next five years.

“At the beginning of 2019, we talked about going “All in AIoT”, and planned an investment of RMB 10 billion (~USD 1.43 billion) in this field over the next five years. After a year of verification, we are increasing our investment in this. We now believe we will invest at least RMB 50 billion (~USD 7.18 billion) over the five years in “5G+AIoT” to double down on our lead in the field. This is to ensure we win in this new smart era,” read an open letter posted by Xiaomi’s founder & CEO Lei Jun.

The Group had established an AIoT strategy committee to help its AIoT development and enhance synergy among its departments during March 2019.

(File Photo) Manu Kumar Jain and Lei Jun with Xiaomi Smartphone Vending Machine (Source -Twitter)

171 million units on Xiaomi’s AIoT platform

Interestingly, the number of connected devices on Xiaomi’s AIoT platform, were more than 170 million as of March 2019. Its AI assistant, Mau, at that time, had more than 45.5 million monthly active users, making it one of the most used AI voice interactive platforms in mainland China.

“We promoted many young and capable leaders, refined our talent grading and selection mechanisms and began training programs at Qinghe University. A deep talent pool will go a long way in contributing to Xiaomi’s long term growth,” read Lei Jun’s open letter.

Q1 2019 marked the debut of Xiaomi’s smartphone + AIoT strategy

The Group recorded revenue of approximately RMB 43.8 billion (approx $6.3 billion), representing a year-on-year increase of 27.2 per cent during Q1 2019. Interestingly, it was also the first quarter after the company had announced its smartphone+AIoT strategy.

“The first quarter of 2019 was the first quarter after the launch of our dual-engine strategy of ‘Smartphone + AIoT’ and a series of key adjustments. Over the past year, we made significant improvements and adjustments in our core strategies, management structure, technology research and development system, product and brand development system, etc,” Lei Jun had noted at that time.

“It is clear to us the strategic importance of “5G+AI+IoT and next generation super internet”. 5G is not solely about a faster smartphone network. “5G+AIoT” represents Xiaomi’s ability to offer services across our comprehensive product line. It gives us the chance to offer unique and pioneering AIoT use cases,” read Lei Jun’s letter.