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Xiaomi Showcases Full-Ecosystem Physical AI as IFA Highlights Shift from Digital to Real World

At IFA 2025, Xiaomi highlighted its lead in physical AI with over 1.16 billion connected IoT devices, spanning phones, cars, and smart home gear, backed by chips, models, and OS integration.

This year’s IFA has dedicated its agenda to artificial intelligence and future technology, with record numbers of humanoid robots and a visible shift from digital content generation to AI that understands and interacts with the physical world. Xiaomi, which the report describes as the world’s first company to achieve full “human-vehicle-home” physical AI integration, drew wide attention from overseas consumers.

The gap between digital AI and physical AI is vast, spanning perception, complex execution, and proactive service. Xiaomi’s approach leverages its long-established device network, HyperConnect, to connect phones, wearables, cars, home appliances, and other terminals. In a demonstration during the Beijing auto show, Xiaomi’s in-car AI allowed users to issue multiple tasks in one sentence, causing the system to book restaurants, order coffee, and summarize route information. The vehicle also senses the driver’s stress level and can adjust home lighting and music accordingly before arrival.

Cars and phones are becoming intelligent nodes. Through the upgraded Super Xiaoai 2.0 expert mode, previously a phone agent called miclaw, users can make cross-device commands from the car, controlling family appliances or home settings remotely, and vice versa. On the computing side, Xiaomi recently launched the O3, O100, and D100 self-developed chips to address edge AI and autonomous driving bottlenecks. The O100 increases memory bandwidth to 1.22TB/s, while its AI Cube system can locally deploy 120B and 3B parameter models.

Model development has also accelerated. The MiMo-V2.5 released in April 2026 handles text, image, video, and audio, while the Xiaomi-Robotics-U0 and Xiaomi-Robotics-1 released in July target robot data generation, movement, and manipulation. HyperOS 4 integrates these models for cross-device, cross-application tasks. Xiaomi’s three factories—including a Wuhan smart home appliance plant with 120,000 data collection points generating 1.1 billion daily data records—serve as real-world training grounds for embodied AI, closing the loop between model iteration and physical deployment.

The report contrasts Xiaomi’s vertical integration with competitors such as Nvidia, which focuses on computing and simulation infrastructure, and Tesla, which uses cars and robots as terminals. It argues that while model companies, robotics startups, and consumer electronics makers each hold advantages, none yet combine all layers. Xiaomi’s recent progress ties together years of investment in handsets, IoT, autos, chips, manufacturing, and robotics.