Xiaomi Enters China’s AI Race with Debut DeepSeek-Style Model

Xiaomi Corporation has officially entered China's competitive AI landscape by launching its first open-source large language model named MiMo. The announcement came just a day after Alibaba introduced the latest version of its flagship AI, intensifying the competition sparked by DeepSeek’s R1, a cost-effective yet powerful AI model that recently disrupted the industry.

An AI Model That Mimics Human Reasoning

The newly launched MiMo, a reasoning model, is designed to replicate the human thought process in solving problems—similar to DeepSeek R1. Xiaomi revealed in a WeChat post that MiMo has outperformed OpenAI’s o1-mini and Alibaba’s Qwen in benchmark tests, although these claims have not yet been independently verified.

Xiaomi's AI Vision Backed by Strategic Investment

The launch of MiMo marks Xiaomi’s official foray into artificial general intelligence (AGI)—AI with human-like cognitive abilities. Despite entering the AI race in 2025, the company emphasized that AGI development is a long-term pursuit. “MiMo is the first taste of our newly established core AI model team,” Xiaomi stated on WeChat.

Government Endorsement Sparks Industry Momentum

Xiaomi’s announcement coincided with a rise in Chinese AI stocks, buoyed by President Xi Jinping’s high-profile visit to an AI tech incubator, signaling Beijing’s strong support for domestic innovation in AI. Xiaomi's stock saw a notable increase of over 5% in Hong Kong trading following the announcement.

From Smartphones to Smart Intelligence

Well-known for producing affordable smartphones, home appliances, and recently venturing into electric vehicles (EVs), Xiaomi’s move into AI is its second major tech shift in recent years. Founder and CEO Lei Jun has spearheaded a $10 billion initiative into the EV sector, branding it as his final startup adventure. The company’s ambition is now expanding into the AI realm.

Challenges in the EV Segment Continue

While Xiaomi is pushing innovation through MiMo, its EV division faced a recent setback. Bloomberg reported that the launch of Xiaomi’s first electric SUV was delayed following a fatal accident involving one of its flagship electric vehicles. The incident has impacted the company’s share price, which has dropped nearly 15% since March 2025.

Xiaomi Maintains EV Launch Timeline Despite Setbacks

Despite concerns, Xiaomi issued a statement on Weibo reaffirming that its YU7 SUV will launch as scheduled, with a release still expected between June and July 2025.

Looking Ahead: AI and EV as Twin Pillars of Growth

With MiMo, Xiaomi is positioning itself as a serious contender in China’s AI race, aligning with state-backed initiatives to reduce dependency on foreign AI technologies. By expanding into AGI and maintaining momentum in the EV sector, Xiaomi is diversifying its tech portfolio and strengthening its influence in the next era of digital and mobility transformation.