Nvidia-Byd Deal Deepens U.S. Tech Firm's Ties With Chinese Brands

The Nvidia-Byd deal strengthens ties between a prominent U.S. tech firm and Chinese brands. This deepening relationship signifies increased collaboration between the two countries in the tech sector, despite geopolitical tensions. By fostering partnerships with Chinese companies like Byd, Nvidia aims to expand its market presence and leverage China's expertise in various industries.

Nvidia is also working with Li Auto, Great Wall Motor, Zeekr, and the EV unit of Chinese telecommunications company Xiaomi.

SAN JOSE, California -- Chinese electric vehicle giant BYD has selected Nvidia's Drive Thor high-performance automotive computer, extending the U.S. chip maker's reach into the world's largest car market despite continued tensions between the two global powers.

Shenzen-based BYD will employ Thor, which can run multiple vehicle functions on a single system-on-chip, to power its next-generation EV fleets. BYD will also adopt Nvidia's technology throughout its entire workflow.

This deal delivers "highly-automated and autonomous driving functionality, all on a single centralized platform," Nvidia Vice President of Automotive Danny Shapiro said during a press briefing at the company's GTC conference here.

BYD, which last year passed Volkswagen brand as China's largest automaker and nearly outsold Tesla in the race to be the world's No. 1 maker of full-electric vehicles, will also use Nvidia's AI infrastructure for cloud-based AI development and training.

"This is a true end-to-end adoption of Nvidia accelerated computing and visualization in the broadest range of automotive applications," Shapiro said.

California-based Nvidia has a strong foothold in China, where its derives about a fifth of its revenue.

Doing so means balancing high demand for its advanced chips from China's rising EV brands while still complying with tightening U.S. controls on exports of advanced semiconductors.

Starting in 2025, Chinese electric vehicle maker Xpeng will also use Thor, Shapiro said. Nvidia is also working with Chinese automakers Li Auto, Great Wall Motor, Zeekr and the EV unit of Chinese telecommunications company Xiaomi also use Nvidia's Drive technology for automated driving.  

Chinese incentives

Chinese automakers are racing to introduce advanced in-vehicle infotainment displays and automated driving functions. Progress is boosted by a "lot of incentives put in place locally for them to innovate," as well as "a lot of regulation that's favorable for them," Shapiro said.  

"They recognize there is this whole new architecture in the car that was really pioneered by creating a computer first and then the car around it. Everyone is basically adopting that strategy."

Chinese automakers offer "great vehicles with good qualities, from both a build quality and a technology perspective" with a "supercomputer in the car and a lot of really advanced systems."

Source: Automotive News Europe