Nvidia, which was once struggling to maintain its relationship with China because of the US-China tech sanctions, is now making significant strides in the country’s rapidly developing electric vehicle (EV) market. In a recent announcement at the CES technology conference in Las Vegas, Nvidia revealed that four leading Chinese EV brands – Li Auto, Great Wall Motor, Zeekr, and Xiaomi‘s new EV unit – will be integrating Nvidia’s DRIVE technology for automated driving systems.

The brands are Li Auto, Great Wall Motor, Zeekr and Xiaomi’s Latest EV Unit

The EV sector in China is rapidly evolving, with local manufacturers vying to enhance in-vehicle infotainment and automated driving capabilities. This race has opened doors for companies like Nvidia, Intel, and Qualcomm, who are vying to supply the necessary advanced semiconductors. However, these US-based firms face the dual challenge of catering to the high demand for powerful chips in China while adhering to the stringent US export controls on advanced semiconductors.

Nvidia Partners Tata

Nvidia’s involvement in the Chinese EV market isn’t just about supplying chips. The company is also collaborating with other industry giants like advertising firm WPP and carmaker Lotus, among six others, to revolutionize online car shopping. They aim to develop shopping platforms featuring three-dimensional and lifelike graphics. Danny Shapiro, Nvidia’s Vice-President for automotive, emphasized the potential of these platforms to enhance the car buying experience.

This development resembles an ongoing trend where non-tech Chinese firms are increasingly leveraging the capabilities of Nvidia’s chips, a move that has positively impacted their stock performance (and AI development too). Nvidia’s expansion in China, despite regulatory challenges, signifies its commitment to remain a key player in the global semiconductor industry and its adaptability in a dynamic landscape.

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