The implementation of full-ecosystem physical AI: Xiaomi’s home offensive and defensive battle
# The implementation of full-ecosystem physical AI: Xiaomi’s home battle for dominance Over the past three years, large models have advanced rapidly in the digital world. However, for AI to realize its industrial value, it must move from information processing to the real world and interact with the physical environment. At IFA 2025, Leifeng Net observed that AI is moving beyond generating content and solving digital tasks to enter the physical world. As the world’s first tech company to achieve the implementation of physical AI across “people, vehicles, and homes” in an integrated ecosystem, Xiaomi received widespread attention at IFA 2025. The barriers to physical AI are much higher than those of digital models, covering the entire chain of chips, models, operating systems, terminals, manufacturing, and scenarios. Giants like Nvidia, Tesla, Alibaba, ByteDance, and Tencent each have their strengths, but there is still a significant gap in covering the complete link of “chips—models—terminals—manufacturing—scenarios.” Xiaomi leads in terms of hardware scale: As of 2026, its IoT platform connects over 1.16 billion devices, covering scenarios such as smartphones, watches, headphones, TVs, air conditioners, vacuum cleaners, and vehicles. However, the sheer number of hardware devices does not directly equate to AI capabilities. Xiaomi…