Best known for budget phones, Xiaomi is now set to invest the sum of $1.5 billion in artificial intelligence and smart devices over the next five years. The Chinese company has floated an Initial Public Offering on the Hong Kong stock exchange. Despite the fact that Xiaomi has gained popularity because of its mobile phones, the company at the IPO has described itself as an internet company. With this move by the Chinese giant to invest in other spaces, the company would really position itself as a true internet company.

Company co-founder Xiaomi Lei Jun said in a statement that this huge investment on high-value services and the IoT is part of the Xiaomi’s strategy to bring more revenue to the company. The Chinese phone maker has also plans of expanding into Europe while pushing its market to the top.

“Now is the time for the action. We are all in on AIoT,” said Lei Jun, CEO of Xiaomi.

AIoT is a reference to the incorporation of AI into IoT in order to create a smart ecosystem of connected devices. AIoTs are intelligent, run on automated systems, and has the ability to learn from users’ habits such as turning lights on when you get back home.

Combining XiaoAI smart assistant with Xiaomi smart home (IoT) devices, the Chinese phone maker has already implemented this system. However, XiaoAI is not in action when it comes languages other than Mandarin.  

After the last year’s July IPO, Xiaomi’s stock has plummeted by roughly 40% and now the company is valued roughly a third of $100 billion.

History in making!

Xiaomi's IPO at Hong Kong stock exchange! Proud moment for all of us. pic.twitter.com/drgvE4TOQx

— leijun (@leijun) July 9, 2018