Xiaomi Defers AI Monetization as Profits Fall for Third Quarter
Xiaomi’s net profits have slid for three consecutive quarters as the Chinese tech giant pours funds into artificial intelligence. R&D spending jumped 25.6% year-on-year to 18.2 billion yuan (US$2.7 billion) in the first half, with AI-related inputs making up nearly 30% of the total. CFO Alain Lam said the company is 'in no rush' to monetize its AI investments, emphasizing large-scale input over immediate returns. President Lu Weibing acknowledged high memory prices and fierce competition but insisted short-term pressure won't alter long-term strategy. The second-quarter earnings decline comes amid intense competition and cost inflation. Xiaomi remains focused on AI-heavy expansion.
Key facts
- Xiaomi net profits declined for three consecutive quarters.
- Second quarter saw another decline in net profits.
- R&D spending increased 25.6% year-on-year to 18.2 billion yuan (US$2.7 billion) in the first half.
- AI-related inputs account for nearly 30% of total R&D.
- CFO Alain Lam says the company is not rushing to monetize AI.
- President Lu Weibing cites high memory prices and fierce competition.
- Xiaomi's AI investment is in a large-scale input phase.
- Strategic approach remains unchanged despite short-term pressure.
Entities
Artists
- Alain Lam
- Lu Weibing
Institutions
- Xiaomi
Locations
- Barcelona
- Spain
- China