Nvidia develops backup plan for China's self-driving industry

Web Summit recently concluded in Portugal, with co-founder Paddy Cosgrave stating during the event that the next generation of superstars will emerge from China rather than California. He further endorsed China and open source technology by suggesting that Chinese firms are currently constructing more of the shared future than any other entities. These comments gained additional significance as reports emerged during the conference that Nvidia founder and CEO Jensen Huang had stepped down from his role after confirming an affair with an alleged spy.

The former chief executive has been a prominent advocate for open source in the United States. Nvidia remains a critical supplier of AI computing technology to the autonomous vehicle sector, though reliance levels differ among firms. While some businesses utilise Nvidia’s automotive processors for automated driving software, others employ GPUs to train autonomous models. Major full-stack partnerships involving Nvidia include Mercedes-Benz, Zoox, and Wayve.

Leo Wang, the CFO of the Chinese autonomous vehicle firm Pony.ai, discussed the obstacles facing China's self-driving sector and the potential impact of stricter export controls on Nvidia chips. Wang noted that demand currently exceeds supply, which remains a significant challenge for Pony.ai. The firm’s strategy involves two approaches: directing engineers to maximise efficiency when deploying training models, such as using midtier compute resources, and shifting towards domestically produced chips.

“If you look at the whole ecosystem, especially in recent years, definitely domestic chips in China also get lots of attention and development,” Wang said, noting these provide extra flexibility for AI training. When asked about tightening export restrictions, he explained that Chinese companies have been preparing for years. “Everyone, I would say, is also practicing kind of like a Plan B for a few years, so at least if you think about that, I would say there are alternatives. Although cost-effectiveness-wise, probably it’s not the best choice yet. But still, it’s an alternative way that already exists and which is more mature than a few years ago,” he added.

Regarding other industry developments, May Mobility intends to utilise the all-electric Volkswagen ID. Buzz for its global ride-hailing platform, aiming to deploy over 10,000 autonomous vehicles by 2031. Volkswagen confirmed it is providing an automated driving-ready base vehicle to companies developing their own systems, clarifying that its MOIA group is not abandoning Mobileye. Additionally, the Japanese robotaxi startup Newmo secured ¥20.8 billion, approximately $135 million, in a funding round led by KDDI.

In other corporate news, the Dutch parking technology firm ParkBee acquired the city and parking operations of Mobian. Meanwhile, the urban logistics company Port raised €14.5 million in a round led by the European Bank for Reconstruction and Development and Balnord. Lucid reported Q3 revenue of $350 million, missing Wall Street expectations, with a net loss of $830.9 million. The EV manufacturer also increased a delayed draw term loan from its primary shareholder, Saudi Arabia’s Public Investment Fund, to $1.75 billion.

The National Highway Traffic Safety Administration is currently investigating a Waymo software recall from last year, following reports of robotaxis illegally passing school buses. The agency noted that many incidents happened after a software update was deployed to resolve the issue. Sources familiar with Waymo stated that no school bus-related incidents have occurred since March, though this could not be independently verified with the Austin Independent School District. Elon Musk stated that the Tesla Cybertruck will continue until next summer, though production will eventually conclude.