Key Takeaways
• Xiaomi launches MiMo, its first open-source AI model, signaling a strategic pivot into artificial general intelligence (AGI).
• The model reportedly outperforms OpenAI’s o1-mini and Alibaba’s Qwen in benchmark tests, though results remain unverified.
• MiMo’s debut follows intensified AI competition in China and coincides with state support for domestic innovation.
• Xiaomi’s stock rose over 5% after the launch, reflecting market optimism around its AI ambitions.
Xiaomi Corporation, the Beijing-based technology firm best known for smartphones and consumer electronics, has launched MiMo, its inaugural open-source large language model (LLM), adding momentum to China’s rapidly expanding artificial intelligence (AI) sector.
Announced on April 30, the MiMo model marks Xiaomi’s most serious move yet into artificial general intelligence (AGI), staking a claim in one of the most strategically contested areas of global tech.
Xiaomi’s First Foray Into Reasoning Models
The MiMo model is designed to replicate human-like problem-solving processes, similar to the architecture seen in DeepSeek’s R1. Xiaomi introduced the model via WeChat, claiming that MiMo outperformed notable competitors in benchmark tests.
• Designed to emulate human cognitive reasoning
• Benchmarks reportedly surpass OpenAI’s o1-mini and Alibaba’s Qwen
• First product released by Xiaomi’s newly formed AI model team
Despite the performance claims, Xiaomi acknowledged the competitive landscape and emphasized the long-term nature of its AGI ambitions.
“MiMo is the first taste of our newly established core AI model team,” Xiaomi said in a WeChat post. “While 2025 may seem like a late stage to take up the dream of large models, we believe AGI is a long-term endeavor.”
This statement represents Xiaomi’s intent to establish itself in a domain traditionally outside its consumer electronics core.
Launch Timing Highlights Rising Competition
MiMo’s release came just one day after Alibaba unveiled an upgraded version of its own flagship AI model, further intensifying the race among Chinese tech leaders.
The momentum in China’s AI landscape has been notably influenced by DeepSeek’s R1, which reset industry benchmarks with its combination of performance and affordability.
By entering the AI model space, Xiaomi joins a roster of Chinese firms aiming to reduce reliance on Western technology and enhance sovereign AI capabilities.
Market Response and National Support
Xiaomi’s shares surged over 5% in Hong Kong trading on the day of MiMo’s announcement.
This came alongside gains in other Chinese AI stocks, driven in part by media coverage of President Xi Jinping’s recent visit to a national AI incubator, which highlighted Beijing’s ongoing support for homegrown AI development.
• Xiaomi’s stock saw significant gains following the MiMo reveal
• Broader Chinese AI sector benefited from Xi Jinping’s endorsement
• Government initiatives continue to foster domestic tech independence
Such policy support underscores the growing strategic importance of AI across multiple domains, including national security, economic resilience, and technological leadership.
Part of a Larger Strategic Pivot by Xiaomi
MiMo is Xiaomi’s most visible step into AI, but not its only one. The company is also pursuing an aggressive $10 billion investment in electric vehicles (EVs), led by CEO Lei Jun, who has described the venture as his final startup challenge.
These efforts represent a significant evolution from Xiaomi’s original identity as a low-cost smartphone brand.
However, Xiaomi’s diversification strategy has faced turbulence. In March 2025, a fatal accident involving a Xiaomi electric SUV was widely reported, casting uncertainty over its debut timeline.
Responding to the concerns, Xiaomi reaffirmed its launch plans.
“The timeline for YU7’s release remains unchanged and is still set for June or July,” the company stated on Weibo following Bloomberg’s report.
This clarification helped stabilize investor sentiment and sustain momentum in Xiaomi’s public positioning.
Industry analysts view Xiaomi’s AI move as a logical extension of its larger ecosystem strategy.
By incorporating intelligent models like MiMo into its suite of smart devices—from smartphones to home appliances to EVs—Xiaomi can create vertically integrated, AI-powered user experiences.
• MiMo could be deployed across Xiaomi’s IoT and smart home platforms
• Open-source approach may attract third-party developer engagement
• Scalability and real-world use cases remain key evaluation criteria
If successfully integrated, MiMo could help Xiaomi differentiate its devices and services in a saturated hardware market.
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