China’s Xiaomi Places a $1.5 Billion Bet on AI and Smart Devices – Bloomberg
What happened: Chinese smartphone manufacturer Xiaomi will invest more than RMB 10 billion (around $1.5 billion) in artificial intelligence and smart devices over the next five years. Xiaomi CEO Lei Jun said the company is looking to increase its focus on AIoT, referring to the combination of artificial intelligence and the internet of things. Xiaomi hopes to increase its revenue from high-value services while focusing on its presence in Europe.
Why it’s important: The company is looking to diversify its revenue streams amid slowing in the global smartphone market, which it expects to pick up again as 5G technologies proliferate. In the meantime, Xiaomi sees the investment as taking action while trade tensions between the US and China brew. The company was once touted as being able to reach a valuation of $100 billion from its IPO in July last year. However, its stock is down 40% since going public