Xiaomi's $7.2-billion AI investment plan could bolster its declining smartphone segment - Business Insider

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Xiaomi's investment plan for AI is similar to other major tech companies looking to establish momentum in the age of ambient computing:

By investing in this space, Xiaomi hopes to supplement and shift away from its core business of smartphones.

Xiaomi hopes to embed its AI throughout the consumer technology ecosystem, thereby establishing a lasting presence at the heart of the user experience. As evidenced by Microsoft's dominance in the PC era, and Google and Apple's success in the smartphone era, companies that control operating systems maintain a significant competitive advantage.

This is why big tech companies have battled so fiercely to place their digital assistants at the center of connected device ecosystems. Big tech companies — Amazon and Google in the US, and

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