The move comes amid growing competition in the artificial intelligence of things (AIoT) sector, which combines AI technologies and IoT infrastructure to achieve more efficient IoT operations, improve human-machine interactions, and enhance data management and analytics.
"We need to turn our continuous advantage we have in AIoT and intelligent life into absolute victory in intelligent full scene," says Xiaomi Chief Executive Lei Jun, "and completely cement our king status in the smart era."
The company also says that it has co-launched a 5G laboratory with state-owned telecommunications company China Telecom.
Last year the company - whose products have expanded beyond cellphones to include a variety of smart devices - pledged to invest 10 billion yuan over five years in an "All in AIoT" strategy. The latest announcement builds on that pledge.
The company faces competition in China from Huawei Technologies, as well as globally from tech giants such as Apple and Samsung.