We have a new technological marriage. Microsoft is joining forces with Xiaomi , this being the first time a ‘Memorandum of Understanding’ (MoU) has been signed between a US and a Chinese technology company.
The collaboration agreement includes sharing technology between both companies and also working together to develop and manufacture hardware, as well as devices based on artificial intelligence and cloud computing.
The perfect strategy
This union will not only serve to have new products on the market signed by both companies, but also help Microsoft enter the China while Xiaomi does the same in the United States, that is, a collaboration that will help expand the presence of both companies in key markets .
No details have been released about costs or money involved, and so far we have only been told that, for example, Microsoft will allow Xiaomi to use its platform in the cloud, Azure. With this, the Chinese will be able to manage updates for their devices from servers located in the United States and other regions outside of China.
Xiaomi will also have access to Cortana, this with the aim of designing, developing and manufacturing together with Microsoft intelligent speakers that can compete with Amazon, Google, and Apple. The first of these speakers would have a “modern” appearance, an “attractive” price and would be very similar to Mi AI Speaker . It is even mentioned that Xioami could be the manufacturer of future smartphones for Microsoft.
In addition, Microsoft and Xiaomi will work together to develop technology based on artificial intelligence. In addition, the Chinese will have access to services such as Bing, Edge, SwiftKey, Translator, Pix, Cognitive Services and Skype. With this, Xiaomi will be able to use all of these products natively on most of its devices.
This move also means a hard blow to companies like Huawei and ZTE , who now face severe problems to sell their products in the United States , which would give Xiaomi a free hand to win this market and expand its presence.
On the other hand, this announcement has been received very favourably in the technology community, causing that Microsoft shares soar 3% after confirmation of the MoU, which basically is an extension to the collaboration that lead to Xiaomi since 2015 .