Xiaomi to invest more than 6 billion euros in 5G, AI and smart health connected objects

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At the start of the year, Xiaomi announces its goal of investing more than 6 billion euros in 5G, AI and IoT (Internet of Things). "We want to cement our position as king in the field", explains the founder of the company.

Xiaomi is preparing for the new decade. The Chinese company will invest some 50 billion yuan (6.25 billion euros) over the next five years in R&D. The majority of this money will go towards the development of 5G, AI (AI) and IoT. It is Lei Jun, the founder of the firm recently demoted in the organizational chart, who reveals this decision, in the middle of his New Year wishes.

With this announcement, Lei Jun significantly enhances Xiaomi's ambitions in the field. In early 2019, the company planned to spend 10 billion yuan (1.2 billion euros) in this area. The budget is now 5 times larger. "We are at a critical moment, with the transition from 4G to 5G. We want to take the lead in 5G-AI-IoT, the new generation of the super-internet. It is not just a combination of the three areas, but a group of products, platforms, and services that will make a whole. We must transform the advance we have in AIoT into an absolute victory, in order to cement our position as king of the internet of smart health connected objects"Lei Jun explains, using the acronym AIoT combining AI and IoT, without specifying the precise direction that his company will take. Note that Xiaomi has already announced a dozen 5G smartphones in 2020.

If Xiaomi shows the muscles, it is also that the manufacturer is still behind by Huawei. The controversial giant recorded an increase of 66% in China in the third quarter of 2019, compared to the same period last year. Meanwhile, Xiaomi has seen sales drop 33%. Results which caused a change of head at the top of the firm. Redmi chairman Lu Weibing took over the post of CEO in Lei Jun.

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