China's Xiaomi says returns from AI investments 'far exceed expectations'

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embodied AI after heavy investment in general AI over the past few quarters. The Beijing-based company's efforts to apply AI in electric vehicles (EVs) and robotics are similar to Elon Musk's plan of using the advanced technology in Tesla cars and Optimus humanoids."Our progress in AI large models and applications has far exceeded our expectations," Lu said on Wednesday, adding that the company believed the deep integration of AI with the physical world represented the next generation of intelligent technology.Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.The smartphone and EV maker launched its first AI model, MiMo, in April. It recently open-sourced MiMo-Embodied, a model that demonstrated "state-of-the-art performance in both autonomous driving and embodied AI tasks", according to Xiaomi.Customers try Xiaomi 17 series smartphones at a company store in Nanjing, Jiangsu province, on September 27, 2025. Photo: VCG via Getty Images alt=Customers try Xiaomi 17 series smartphones at a company store in Nanjing, Jiangsu province, on September 27, 2025. Photo: VCG via Getty Images>China has seen a surge of interest in the adoption of AI in the EV sector. Xiaomi debuted its premium SU7 Ultra in February, integrating the company's Hyper-Autonomous Driving technology, a smart driving system.Interest has also grown in embodied AI, the integration of the technology into physical systems. Xiaomi ramped up investment in the robotics sector following the debut of its robot dog in 2021 and a humanoid prototype in 2022.Lu emphasised that Xiaomi was "hungry for talent". The company's MiMo team recently hired Luo Fuli, a former researcher at DeepSeek who was a key contributor to the Chinese AI start-up's V2 model. Luo is scheduled to speak at Xiaomi's developer conference on December 17, as head of the MiMo team.Xiaomi's smart EV, AI and other new initiatives turned a profit for the first time in the third quarter. The businesses collectively generated a record 29 billion yuan (US$4.1 billion) in revenue in the quarter, up 199 per cent year on year. 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