Xiaomi Raises $5.5B to Supercharge EV and AI Ambitions

China’s Xiaomi Corp (OTC:XIACF) has raised $5.5 billion through an upsized share sale, fueling its aggressive push into electric vehicles (EVs) and artificial intelligence (AI). The tech giant sold 800 million shares at HK$53.25 each, pricing near the lower end of its HK$52.80–HK$54.60 range. The offering was expanded from the initially planned 750 million shares due to strong investor demand, despite the 6.6% discount from Xiaomi’s HK$57 Monday closing price.

The funds will support Xiaomi’s rapid expansion, research, and tech development, particularly in EVs and AI. After entering the EV market last year with its SU7 sedan, Xiaomi has seen strong momentum. In 2024, its EV division generated 32.1 billion yuan ($4.4 billion) in revenue, with over 135,000 SU7s delivered. The company has now raised its EV delivery target for 2025 to 350,000 units and plans to begin international car shipments by 2027.

Further boosting its EV infrastructure, Xiaomi acquired a 52-hectare site in southern Beijing for the third phase of its auto plant. Meanwhile, Xiaomi President Lu Weibing confirmed that 7–8 billion yuan—around a quarter of the company’s 30 billion yuan R&D budget for 2025—will go toward AI development.

The capital raise is part of a broader trend of Chinese tech firms seizing market optimism to secure funding. In Q1 alone, Chinese companies generated $16.8 billion in equity capital activity—more than double the same period last year. A recent summit led by President Xi Jinping with top tech leaders also signaled easing regulatory pressure, further boosting investor confidence.

Xiaomi, already the world’s third-largest smartphone maker, is strategically diversifying to become a major force in the global EV and AI markets.