Xiaomi Defends 18.2 Billion Yuan R&D Push as AI Spending Weighs on 3 Straight Quarters of Profit
Updated
Updated · South China Morning Post · Aug 18
Xiaomi Defends 18.2 Billion Yuan R&D Push as AI Spending Weighs on 3 Straight Quarters of Profit
2 articles · Updated · South China Morning Post · Aug 18
Summary
Xiaomi said it is “in no rush” to monetize AI even after second-quarter net profit fell again, extending its profit decline to three consecutive quarters.
18.2 billion yuan in first-half R&D spending—up 25.6% from a year earlier—went partly to AI, which accounted for nearly 30% of the total, CFO Alain Lam said.
High memory prices and fierce competition are squeezing near-term earnings, but President Lu Weibing said those pressures will not alter Xiaomi’s long-term AI strategy.
The stance signals Xiaomi is prioritizing scale and capability-building in AI over immediate returns despite rising cost inflation.