Microsoft and Xiaomi to share their mutual strategic interests in AI, cloud computing, and hardware

Microsoft and Xiaomi to share their mutual strategic interests in cloud computing, AI, and hardware, with the aim of making the products and services with Mi logo better fit the global market.

In 2015, Microsoft and Xiaomi marked their very first important milestone in their long-term partnership by a deal to test Windows 10 on Xiaomi devices. One year later (September 2016), to help run other Microsoft Corp’s services on its devices, Xiaomi bought 1,500 of its patents. And this year, these two companies announced another chapter in its collaboration. To boost the chances for effective cooperation around cloud technologies, AI, and hardware products, Xiaomi and Software maker Microsoft Corp have announced an expanded strategic agreement - a Strategic Framework Memorandum of Understanding (MoU).

Windows 10 on Xiaomi Mi4

Don’t be surprised by the partnership between a U.S. company and a Chinese company on artificial intelligence. It certainly makes sense since it is an awesome collaboration between the world’s biggest multinational technology company and the fastest growing smartphone maker in the world.

Xiaomi and Software maker Microsoft Corp will work together going forward on four distinct areas listed in the MoU including natural language processing (cloud support), computer vision (laptop-type device), text input (Microsoft Cortana and Mi AI Speaker), and conversational AI (AI services collaboration).

Thanks to Microsoft’s allowance to let Xiaomi use its Cloud computing products, including Azure, the Apple of China is expected to develop upgraded phones, smart speakers, laptops, and improved AI services (Artificial Intelligence-powered service) to dramatically increase its market share and even to gain its popularity among users in all the markets on globe, specifically in the U.S. – one of the world’s biggest markets for those hardware products and services.

Do you want your favorite apps and experiences to work seamlessly on the smartphone or any device of your choice, don’t you? That is exactly what the strategic collaboration between these two big companies offers. Not only does improve Xiaomi’s user data storage and services as well as bandwidth potential, a broad technology collaboration partnership – the integration of Microsoft’s Azure cloud platform with the Mi AI speaker also gives a boost to Xiaomi’s laptops and other services where a smart device ecosystem will be used beneficially. With the active support of Windows software, the plan to join the laptop and “laptop-style” products’ future of the Chinese brand will arguably gain a competitive advantage and accelerate its international growth, especially in the Western countries’ markets.

Microsoft and Xiaomi to share their mutual strategic interests in cloud computing, AI, and hardware

The Chinese device maker Xiaomi is not the only one to take advantage of the new deal that focuses on the cloud computing, hardware, and AI application development. As part of the strategic agreement, the Cortana technology of Microsoft will be integrated with the Mi AI speaker - a budget speaker with a modern look and smart device ecosystem. The result of the integration of Microsoft’s technology with Xiaomi’s smart hardware is Cortana-powered smart speaker. A digital device developed by the Invoke from Harman Kardon and powered by Cortana – a smart personal assistant of Microsoft, the intelligent speaker of Harmon Kardon Invoke is expected to be struggling to win in the competition with other current favorite digital assistant speaker options available on Amazon and Google or personal and home assistants like Alexa and Siri.

And their expanded partnership with a host of proposed collaborative projects to work more actively and efficiently in the areas of cloud computing, AI (including Microsoft’s Cortana technology) and hardware is expected to provide millions of devices and innovative customers with productivity services and excellent experiences on mobile devices.

As part of the strategic global partnership expansion, Microsoft Corp. and Xiaomi Inc. will explore ways to be able to install Microsoft Office and Skype Excel, PowerPoint, and Outlook on Xiaomi Android-based smart devices such as phones, laptops, and tablets as well as other laptop-style products. As a result, brand new ways to communicate, work, and collaborate (including Redmi 3, Redmi Note 3, Mi 4s, Mi 5, and Mi Max) will be provided to tens of millions of innovative users and business customers in India, China, and all over the world. By that way, Xiaomi can complete its mission as a pioneer to deliver cutting-edge innovation to people all around the world, especially technology lovers. It will not take Xiaomi much time to achieve its ambition – to become the world’s most popular smartphone company. Also, a cross-license and patent transfer agreement will be included in the two companies’ new collaboration on cloud computing, hardware, and AI applications.

However, it is only the first step of the two big companies’ collaborations on cloud technologies and AI - an ongoing investment for leading software and tech companies. The companies will be working together on expanded strategic projects based on a broad range of the unique strengths and experience in AI of the leading platform and productivity company, such as conversational AI and Speech, Computer Vision, Text Input, Natural Language Processing, Knowledge Graph and Search, as well as related Microsoft AI products and services, such as Cortana, Skype, SwiftKey, Bing, Pix, Edge, XiaoIce, Translator, and Cognitive Services.

Microsoft will also benefit from the expanded collaboration with Xiaomi

And according to Microsoft and Xiaomi spokespersons, as they have chosen to deepen the cooperation around cloud computing through a memorandum, their partnership is not legally contractual, and it is still unclear whether any financials terms to the arrangement are involved at this time or not.