Xiaomi slashes MiMo-V2.5 API prices by 99% in AI price war

Xiaomi has officially entered the AI API price war with a staggering 99% permanent price reduction for its MiMo-V2.5 series API, effective May 27, 2026. The price cut applies uniformly across different context window lengths, with no per-window surcharges. Alongside the rate reduction, Xiaomi revamped its Token Plan billing system, bumping package quotas by 5 to 8 times. This aggressive pricing directly counters DeepSeek's earlier permanent price slash, signaling a new phase of fierce competition among Chinese AI providers.

For developers and enterprises, this means dramatically cheaper access to Xiaomi's large language models for tasks like text generation, code completion, and multi-turn chat. The subsidized pricing is likely to accelerate adoption of MiMo-V2.5 in production workflows, especially for high-volume applications. However, the move also raises concerns about AI API commoditization and whether such pricing is sustainable long-term. Xiaomi aims to capture market share and lock in customers before margins recover.