Xiaomi commits $8.7 billion to AI as MiMo-V2-Pro model drives stock surge and investor optimism

Xiaomi Unveils Massive Artificial Intelligence Investment Plan

Xiaomi has committed to invest at least 60 billion yuan ($8.7 billion) in artificial intelligence over the next three years, CEO Lei Jun announced at a company event in Beijing on Thursday 1

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. The announcement positions the Chinese smartphone and electric vehicle giant as a major contender in the intensifying AI race, with AI research investment for 2026 alone exceeding the previously announced 16 billion yuan ($2.3 billion) figure 2

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. This substantial AI investment signals Xiaomi's determination to compete with tech giants like Alibaba and Tencent in China's rapidly evolving artificial intelligence landscape.

MiMo-V2-Pro Large Language Model Gains Global Traction

The investment announcement came just one day after Xiaomi officially unveiled MiMo-V2-Pro, its new flagship large language model that was originally uploaded anonymously onto OpenRouter last week 1

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. The model has rapidly climbed the AI gateway platform's leaderboard rankings, processing more than 1.5 trillion tokens or units of data—a clear indication of strong reception from developers worldwide. Lei Jun emphasized the model's global impact, noting that developers have praised V2-Pro for its high intelligence quotient, emotional intelligence, and crucially, its task execution ability that is both fast and accurate 1

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. The company designed these in-house AI models specifically for agent-based applications, targeting a segment where competition among Chinese tech companies has intensified 2

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Targeting the AI Agent Market with Strategic Focus

Xiaomi's increased focus on artificial intelligence comes as competition in China's chatbot space shifts toward agents, which require far less prompting and can execute more complex tasks 1

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. While AI chatbots in China have faced intense downward price pressures, particularly since DeepSeek's ascent over the past two years, tech firms are eyeing the much higher token consumption required by agents as a potentially lucrative revenue stream. MiMo-V2-Pro was specifically created to handle agent workloads, according to Lei Jun, as agent frameworks like OpenClaw gain traction across China 1

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. The company has also begun testing its Miclaw AI agent for mobile devices, supporting Xiaomi's plan to build a connected ecosystem across AI, software, and hardware 2

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Investor Sentiment Surges on Foundation Model Development

Xiaomi's stock jumped following the announcements, making it the top performer on the Hang Seng Tech Index during the session, even as the broader tech index fell more than 2% 2

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. Investors shifted attention toward Xiaomi's AI push and electric vehicle strategy, moving past earlier concerns about rising memory costs that had weighed on the company's profitability outlook. Goldman Sachs analysts noted that the new model launches could reinforce Xiaomi's standing in foundation model development, though they cautioned that heavier research spending may weigh on near-term profit 2

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. However, the analysts added that steady delivery could improve the market's view of Xiaomi's long-term value, particularly its ability to combine AI, operating systems, and chip capabilities. Lei Jun also highlighted the youthfulness of the team behind MiMo-V2-Pro, with an average age of 25 and over half holding doctorate degrees or hailing from China's top two universities, PKU and Tsinghua, led by ex-DeepSeek researcher Luo Fuli 1

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