Chinese electronics company Xiaomi Corp (XIACF) is planning to invest over $7 billion in artificial intelligence of things (AIoT) and fifth-generation (5G) internet technologies over the next five years, Reuters reports.

What Happened

The founder and CEO of Xiaomi, Lei Jun, posted a letter on the company’s social media account on Thursday, announcing the plan to invest over $7.18 billion (50 billion yuan) in AIoT and 5G technologies.

“We need to turn our continuous advantage we have in AIoT and intelligent life into absolute victory in intelligent full scene, and completely cement our king status in the smart era,” said Jun in the letter.

AIoT is short for artificial intelligence of things, which combines artificial intelligence (AI) technologies with the Internet of Things (IoT) infrastructure to ensure more efficient IoT operations.

Why It Matters

The announcement aligns with Xiaomi’s goal to invest more on AI and IoT technologies.

Last year, Xiaomi revealed its plan to invest over 10 billion yuan in AI and the IoT over the next five years. 

The Chinese Smartphone company is, however, facing fierce competition from its home rivals, such as Huawei Technologies, which captured 42% of China’s overall smartphone market in the third quarter of 2019.