Chinese electric carmakers are turning to Nvidia to power their semi-autonomous driving systems as they intensify competition with Tesla, according to a report by CNBC on Friday.

  • Chinese EV startups Xpeng and Nio are using the Nvidia Drive Orin chip in manufacturing their latest cars. Baidu also plans to use the same Nvidia chip in its upcoming car.
  • With the chip and its corresponding software platform, Nvidia promises improved capabilities for fully autonomous driving.
  • Bevin Jacob, partner at Shanghai-based investment and consulting firm Automobility stated there is no other match for Nvidia’s chips for a Chinese EV company.
  • Meanwhile, Chinese carmakers are not developing fully autonomous cars. The manufacturers are focusing on the advanced driver-assistance system (ADAS).
  • ADAS allow the carry to out some functions semi-autonomously like switching lanes. Tesla’s ADAS is referred to as Autopilot, and Xpeng’s system is known as Xpilot.

Competition in China’s EV market is expected to intensify in 2022, benefiting Nvidia. NVDA up +0.79%