CEO of Xiaomi, Lei Jun just revealed a plan to invest $1 billion in Kingsoft Cloud in the next three to five years. The investment will be used for growth and expansion in the cloud storage and security market.
Xiaomi’s Big Investment
We’ve been following the Chinese technology and cloud storage scene for months now. From breaches to investments, the Chinese market is growing and changing just like the United States’. Xiaomi, which has been a huge name in the cloud market overseas, is making headlines again as a result of an investment decision made by the company’s CEO.
In addition to leading Xiaomi and its initiatives, Lei Jun is also the executive director for Kingsoft Cloud, a company that provides cloud storage for enterprises and developers. At a publicity event for the company on Wednesday, Jun announced that Xiaomi plans to investment $1 billion (US) into Kingsoft and its cloud services throughout the upcoming three to five years.
He referred to the investment as Kingsoft’s “All-in on cloud services” approach. This venture stands to be beneficial in two ways for the CEO. First of all, Xiaomi owns about 10 percent of Kingsoft thanks to a purchase made by Jun two years ago. Therefore, the more money Kingsoft makes, the more money Xiaomi and Jun stand to make as well.
Kingsoft Cloud offers a variety of services to subscribers from data hosting and cloud storage to series particularly for developers. However, due to the announcements of the $1 billion investment, it’s likely that the company will undergo expansions in many of its business segments in the next five years. Discussions about the future of the company have also hinted that the investment will in part be used to grow Kingsoft’s line of online security products.
As more detailed plans for this investment are announced and implemented, we will keep you updated. What do you think about Xiaomi’s investment into Kingsoft?