Nvidia Corporation lands success in China as its electric vehicle makers turn to the company to power their semi-autonomous driving systems.
Chinese startups Xpeng and Nio now use the Nvidia Drive Orin chip in their latest cars.
At the same time, Baidu, who unveiled its auto unit Jidu last year, stated that it would utilize the same Nvidia chip in its upcoming vehicle.
Polestar, a segment under Chinese auto giant Geely, is also confirmed to work with the US high-performance chip maker.
Accordingly, these automakers aim to ramp up competition with the leading EV firm Tesla in the world’s largest vehicle market.
They wanted to apply Nvidia’s technology to power software-driven features focusing on the advanced driver-assistance system (ADAS).
The program allows electric vehicles to carry out some functions semi-autonomously, like lane switching.
For instance, Tesla’s ADAS is known as Autopilot, while Xpeng has the Xpilot.
According to experts, the said program and other features like fast charging and range are the key differentiators in the high-end EV space.
Moreover, Nvidia vows that capabilities for fully autonomous driving could be possible for its chipset and accompanying software platform.
Meanwhile, its share price closed 5.09% or 14.24 points to $265.75 yesterday amid the broad weakness of semiconductor stocks.
Still, it stands 101.33% or 133.75 points stronger than last year’s performance.
Nvidia to Raise Tesla Competition in China
Tesla now faces rising rivalry after having one of its worst public relations crises in the country last year.
Nevertheless, the American EV maker established a factory in Shanghai and hit a record number of China-made cars in December.
Unlike the Chinese companies, it does not use Nvidia chips. Instead, it develops its own semiconductors to power its Full Self-Driving (FSD) chip.
Meanwhile, the local startups focused on ramping up production and delivering cars.
Notably, they turn to the heavyweight US semiconductor for chips to power ADAS features to rival Tesla.
Nvidia significantly benefited from the intensifying competition in China’s electric vehicle market.
Furthermore, analysts have expected that the sector would post another solid growth this year.