September 9, 2022: -Chinese electric car maker Nio bound others in the industry by saying that U.S. limitations on Nvidia chip sales to China won’t affect the business.
In the previous week, Nvidia disclosed that the U.S. would require the chipmaker to get a license for future export to China for specific products to lower the risk of employing them by the Chinese military.
“We believe this will not affect our business operations,” William Li, founder, chairman, and CEO of Nio, communicated through the company’s translator during an earnings call. That’s according to a StreetAccount transcript.
“Based on our estimations, our computing power is sufficient for our autonomous driving technology development in the element of the AI training for now,” Li said. “And we have been working very closely with our partner Nvidia.”
The Nvidia Drive Orin chip has become a core part of assisted driving tech for Nio and other electric car companies in China. An online Nvidia blog post described how Nio’s latest ES7 SUV came with four chips, including one that allowed the car to learn from individual driver preferences.
The recent U.S. restrictions target Nvidia’s A100 and H100 products, whose sales are part of the more significant data center business. The products are graphics processors that exist used for synthetic intelligence.
On Wednesday, Li said that there are many companies in China with artificial intelligence training chips and that Nio is evaluating opportunities to work with different companies.
But he said the U.S. restrictions would not affect Nio’s long-term strategy.
In the last week, automaker Geely said it wouldn’t be affected by the new restrictions, as did autonomous driving start-ups WeRide and Pony.ai.
Earlier this week, Chinese financial information site Caixin said that He Xiaopeng, chairman of electric car start-up Xpeng, said the restrictions would bring challenges for all autonomous driving algorithm training on cloud computing media.
But he said the group had bought enough high-tech products to meet the demand for the coming years. Caixin mentioned His post on a personal WeChat account, similar to a personal Facebook news feed post.