Xiaomi Announces $28 Billion R&D Investment Over Five Years, Focusing on Chips, OS, and AI

On May 21, 2024, Xiaomi held its "Human-Car-Home Full Ecosystem" launch event in Beijing, unveiling two all-electric SUVs: the YU7 GT and the YU7 Standard. Following the event, Lei Jun, founder, chairman, and CEO of Xiaomi Group, revealed that over the past five years, Xiaomi has invested a cumulative RMB 105.5 billion in R&D—surpassing its earlier commitment of RMB 100 billion. Looking ahead, Xiaomi plans to invest at least RMB 200 billion over the next five years, focusing on three core technologies: chips, operating systems (OS), and artificial intelligence (AI), to support its "Human-Car-Home Full Ecosystem" strategy. Lei stated that since Xiaomi adopted its "technology-first" approach in 2020, its annual R&D investment has grown by over 20% on average. In the chip sector, Xiaomi has built a comprehensive portfolio spanning from its Surge series for smartphones to dedicated automotive chips. The YU7 GT features Xiaomi’s self-developed motor control chip in its V8sEVO super motor, achieving partial localization of key components within the "three electric systems" (battery, motor, and electronic control) of new energy vehicles. In AI, as of March 2024, Xiaomi had invested RMB 5.79 billion in its XLA cognitive large model, with an R&D team exceeding 1,800 personnel and a test fleet of over 400 vehicles. Its AI capabilities now span cockpit interaction, driver assistance, and IoT collaboration scenarios. In smart manufacturing, Xiaomi’s Yizhuang Smart Factory in Beijing has become an industry benchmark. In robotics, Xiaomi has completed three generations of its CyberOne humanoid robot within three years since 2022; the third generation was deployed in February 2026 at the Yizhuang factory for quality inspection and material transport tasks, with plans to deploy over 2,000 units in 2024. Xiaomi’s proprietary HyperOS operating system now powers smartphones, vehicles, and IoT devices, enabling a unified technical architecture across multiple terminals. The newly launched YU7 GT is equipped with an 897V silicon carbide high-voltage platform and a 101.7 kWh ternary lithium battery pack, setting a new SUV lap record at the Nürburgring Nordschleife with a time of 7 minutes and 22.755 seconds. The YU7 Standard starts at RMB 233,500. Lei candidly admitted that in direct comparisons with the Tesla Model Y, the YU7 currently holds “two wins against eight losses,” but emphasized that “building cars is a decade-long endeavor” and expressed confidence that Xiaomi will gradually close the gap with Tesla. In 2025, Xiaomi reported revenue of RMB 457.3 billion, providing a solid financial foundation for sustained high R&D investment. Key future challenges include narrowing the gap with global semiconductor leaders in computing power, energy efficiency, and process technology; accelerating the deployment of urban NOA (Navigate on Autopilot) and end-to-end large models in intelligent driving; scaling manufacturing capacity from the current 100,000-unit annual level toward one million units; and strengthening its after-sales service network and brand trust. This planned RMB 200 billion investment marks Xiaomi’s strategic transformation from a consumer electronics company into a hardcore technology enterprise, positioning its R&D scale to directly compete with both traditional automakers and leading EV startups.