Nio Joins Geely And Other Peers In Expressing Indifference To Nvidia's Export Ban

Anusuya Lahiri
2 min read
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In this article:

  • Chinese electric car maker Nio Inc (NYSE: NIO) joined others in the industry denying any impact from U.S. restrictions on Nvidia Corp (NASDAQ: NVDA) chip sales to China, CNBC reports.

  • Now the U.S. requires Nvidia to get a license for future export to China for certain products, citing national security concerns.

  • The new U.S. restrictions target Nvidia's A100 and H100 products, whose sales are part of its more significant data center business.

  • Nvidia expects to lose $400 million or 10.6% of its data center business and 6.8% of its overall third quarter revenues due to the newly imposed restrictions, CNBC writes.

  • Nio founder, Chair, and CEO William Li estimated that computing power is sufficient for its autonomous driving technology development in the aspect of AI training for now.

  • The Nvidia Drive Orin chip has become a core part of assisted driving tech for Nio and other electric car companies in China.

  • Nio's new ES7 SUV came with four Nvidia chips, including one that enabled the car to learn from individual driver preferences.

  • Li acknowledged multiple options in China regarding artificial intelligence training chips.

  • He also noted that the restrictions would not affect Nio's long-term strategy.

  • Last week, automaker Geely Automobile Holdings Ltd (OTC: GELYY), WeRide, and Pony.ai expressed their indifferences to the restrictions.

  • The U.S. took steps to restrict China's access to cutting-edge semiconductor technology, including imposing restrictions on China's chipmakers.

  • China's President Xi Jinping sought a more robust effort to pool nationwide resources to advance critical technologies during a Communist Party meeting.

  • Price Action: NIO shares traded higher by 0.40% at $17.55 in the premarket on the last check Thursday.

  • Photo via Company

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