(Yicai) Dec. 27 -- Xiaomi’s stock price jumped after the Chinese consumer electronics giant said it will boost spending on research and development next year by 25 percent to CNY30 billion (USD4.1 billion), with a focus on artificial intelligence, operating systems, and semiconductors.

After jumping by as much as 6.7 percent in Hong Kong earlier today, Xiaomi [HKG: 1810] closed 4.3 percent higher at HKD34.15 (USD4.40) a share. The stock has more than doubled in value since the start of the year, compared with an 18 percent gain in the benchmark Hang Seng Index.

Beijing-based Xiaomi expects its annual R&D outlay to total CNY24 billion (USD3.3 billion) this year, President Lu Weibing said at a company event today. The five-year goal is to invest more than CNY100 billion by 2026.

During the firm’s third-quarter earnings conference call last month, Lu had already said Xiaomi would increase its investment in AI, noting its rapid development and potential to transform the user experience. Businesses need to build robust infrastructure and develop long-term technology strategies, as operating systems increasingly incorporate AI capabilities, he added.

Xiaomi formed a team to develop large language models within its AI Lab in April last year. Roughly a year later, the company unveiled MiLM, its first LLM, which will be integrated into its product range, which includes cars, phones, and smart home devices.

Chinese news outlet Jiemian reported yesterday that Xiaomi is developing a dedicated cluster of 10,000 graphics processing units for AI model development. The company has not yet commented on the report.

Fu Liang, an independent telecoms industry analyst, told Yicai that major Chinese cloud service providers are building 10,000-GPU data centers. Given Xiaomi's focus on LLMs as crucial support for its Human x Car x Home ecosystem, its computing cluster should see high utilization rates. But he believes that the key factor for success will be the supply of core chips.

Editor: Emmi Laine