Microsoft and Xiaomi have signed a memorandum of understanding (MoU) to work closely in cloud computing, AI, and hardware. It has so far been uncommon for a US company to partner with a Chinese company on artificial intelligence, but it definitely makes sense as both countries are the biggest markets for those products and services.

Microsoft is planning to allow Xiaomi to use its cloud computing products, including Azure, to develop upgraded phones, laptops, and smart devices to bring them to an international market. At the same time, the partnership will also give Microsoft more reach and access to the Chinese market.

The two are also in discussions about possibly integrating Microsoft Cortana with the Mi…

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