ΗXiaomi Corp. will invest at least 10 billion yuan ($ 1,5 billion) in artificial intelligence and smart devices over the next five years, as it predicts an industry downturn and economic uncertainty stemming from tensions between the US and China.
The investment is part of the Beijing-based company's strategy to increase revenue from high-value services and IoT, according to billionaire co-founder Lei Jun. The company is also focusing on boosting the market while expanding in Europe, Lei told Bloomberg Television on Thursday. In doing so, Xiaomi is taking action in the context of a trade war launched by the United States that is causing global financial uncertainty, he added.
"Now is the time for action. We are all focused on AIoT ", Said Lei, referring to the combination of AI and the so-called ecosystem of connected devices known as IoT. He did not elaborate on his investment plan.
Xiaomi is looking to diversify its revenue as global demand for smartphones approaches, although it expects demand to return to positive, with the advent of state-of-the-art fifth-generation wireless network.
Xiaomi is now worth about a third of its initial public offering, having lost about 40% of its value since its initial public offering in July 2018.
