American tech giant Nvidia announced the new partnerships it formed with four Chinese electric automakers during the CES 2024 technology conference on Monday. As per Reuters, they aim to access Nvidia’s DRIVE technology to power their respective automated driving systems.
These partnerships demonstrate Nvidia’s strong commitment to solidify its presence in the world’s largest auto market despite Washington’s more stringent export rules.
New partnerships
Nvidia’s new Chinese electric automaker partners include Li Auto, Great Wall Motor, Zeekr, and Xiaomi’s new EV subsidiary.
The partnership will enable them to employ Nvidia’s DRIVE technology to serve as the brain of their automated driving systems.
Apart from these, Nvidia also announced at the event that it partnered with advertising giant WPP, Lotus, and six other players to accelerate the development of innovative online shopping tools.
According to Nvidia’s Vice President for Automotive, electric automakers and dealers seek to launch such sites with more lifelike graphics to enhance customer shopping experience.
So what?
China’s highly competitive electric vehicle industry can deliver a growth opportunity for Nvidia’s automotive tech business.
South China Morning Post noted that Chinese players are actively working to introduce more advanced in-car infotainment displays and automated driving features. To do that, they need cutting-edge chip technology from companies like Nvidia, Qualcomm, and Intel, among others.
However, US-based semiconductor developers were struggling to meet Chinese customers’ demands due to increasingly stringent regulations on advanced semiconductor exports to China.
Nvidia to launch China-focused AI chip
Nvidia aims to start mass producing China-focused artificial intelligence (AI) chips in Q2 2024 to adhere to the US export rules, Reuters reports, citing two people familiar with the matter.
“Nvidia has been working very closely with the US government to create products that comply with its regulations. Our plan now is to continue to work with the government to come up with a new set of products that comply with the new regulations that have certain limits.”
Nvidia CEO Jensen Huang told a press conference in Singapore on Wednesday
The H20 chip is apparently the most powerful and advanced of the three China-focused chips the American company created to comply with tighter export rules announced last October 2023.
However, one of the unnamed sources asserted that the company will initially have limited production and prioritize major customers’ orders. Nvidia’s partnerships with Chinese players are crucial for its expansion efforts in China, a key market that may deliver significant growth in its auto technology business.
