Xiaomi is reportedly making one of its biggest AI infrastructure investments to date. According to a new report from Jiemian News, the company has significantly expanded its GPU computing power plans with Kingsoft Cloud, increasing its related investment budget from nearly 4 billion yuan to more than 10 billion yuan (approximately $1.4 billion). The move comes as Xiaomi accelerates its AI ambitions following its previously announced 60 billion yuan ($8.4 billion) AI investment plan over the next three years.
Xiaomi’s AI computing demand is growing rapidly
The report claims that Kingsoft Cloud is accelerating the deployment of new GPU computing clusters during the second half of the year to meet rapidly increasing demand from major AI customers.
Xiaomi’s requirements have reportedly grown from a 10,000-GPU cluster to a super-large-scale GPU computing cluster, prompting a substantial increase in infrastructure investment.
According to people familiar with the matter, Xiaomi will become one of Kingsoft Cloud’s largest computing customers as the company expands development of AI models and intelligent services.
Investment exceeds $1.4 billion
The report states that Xiaomi’s direct investment in GPU computing has increased to over 10 billion yuan (approximately $1.4 billion).
This follows comments made by Xiaomi founder and CEO Lei Jun earlier this year, when he announced that Xiaomi would invest 60 billion yuan (approximately $8.4 billion) in artificial intelligence over the next three years.
Kingsoft Cloud has also reportedly increased its 2026 capital expenditure plan to 15 billion yuan (approximately $2.1 billion), largely driven by Xiaomi’s growing demand for AI computing resources.
How the partnership reportedly works
According to the report, Xiaomi and Kingsoft Cloud use a financing model designed to rapidly expand GPU infrastructure.
The reported structure includes:
- Xiaomi prepays for long-term GPU computing leases
- Kingsoft Cloud uses the prepaid funds to purchase GPU hardware
- Xiaomi contributes approximately 20%–30% of the total investment
- The remaining funding comes from bank loans and external financing
Based on Xiaomi’s current commitments, the report estimates that Kingsoft Cloud could ultimately purchase more than 40 billion yuan (approximately $5.6 billion) worth of AI hardware.
Over the next two years, the total procurement scale could reportedly exceed 100 billion yuan (approximately $14 billion).
AI infrastructure race continues
The report also highlights another major agreement involving Kingsoft Cloud. Alibaba’s large language model team has reportedly signed a five-year GPU computing lease covering more than 3,000 eight-GPU servers.
The contract is estimated to generate approximately 300 million yuan ($42 million) in monthly revenue after deployment, or more than 4 billion yuan ($560 million) annually.
These investments demonstrate how China’s largest technology companies are rapidly expanding AI computing infrastructure as demand for foundation models, generative AI, and intelligent cloud services continues to grow.
Market impact
Although Xiaomi is widely known for smartphones, electric vehicles, and smart home products, artificial intelligence has become one of the company’s highest strategic priorities.
Large-scale GPU clusters are essential for training foundation models, developing AI assistants, powering Xiaomi HyperOS intelligent features, and supporting future robotics and automotive AI technologies.
If the reported investment figures are accurate, Xiaomi would become one of the largest buyers of AI computing resources in China’s consumer technology industry.
