Mubasher: Xiaomi plans to invest at least 10 billion Chinese yuan (CNY) ($1.5 billion) on artificial intelligence (AI) and smart devices in the upcoming five years.

The investment came within the framework of Xiaomi’s strategy of fetching more revenue from high-value services and so-called ecosystem of connected devices known as the Internet of Things (IoT), the company’s co-founder Lei Jun told Bloomberg Television on Thursday.

“Now is the time for the action [and] we are all in on AIoT,” Lei said, referring to the combination of AI and IoT.

The smartphone manufacturer also looks to roll out upmarket products while expanding into Europe, he noted.

Xiaomi’s moves came amid a brewing trade conflict which sparked doubts about global economic growth, he added.

The world's fourth largest smartphone producer aims to diversify its revenue as demand for smartphones plateaus worldwide, although it expects demand to recover with the advent of fifth-generation (5G) technology.