BEIJING, June 10 -- Chinese tech company Xiaomi on Wednesday announced investment of one billion U.S. dollars to build up business in online video.

The move comes as tech giants around the globe scramble to expand their video business, seen as a vital driving force in cyber connectivity.

Lei Jun, CEO of the smartphone manufacturer, said Xiaomi would form an association with video-sharing websites and film makers, but the company would not make content itself.

Xiaomi, one of the world's most valuable tech companies, worth45 billion U.S. dollars, hopes to gain an edge through about 100 million Xiaomi devices that stream video.

Xiaomi was the second largest smartphone maker in China with13.5 million smartphones shipped in the first quarter this year, trailing Apple, whose shipments stand at 14.5 million, according to IT consultancy IDC.