NVIDIA is facing new restrictions on its chip sales in the Chinese market. As a result, pretty much all the industries that rely on chips will be affected significantly. However, Nio (a Chinese electric car maker) released a statement that this chip restriction will not effect the car maker's business.
The USA has put certain limitations on Nvidia, which means that it will require a license to make any new exports to the Chinese markets. The restrictions are only for certain products which are popular among commercial and business users.
The reason for these restrictions was to stop the Chinese military from using US-made hardware. There are also risks that the Chinese could copy important US technology and replicate it on the mainland.
No Impact On Nio Business Operations
William Li, who is also the founder of Nio, clearly stated that the new rules would not impact the automaker's business operations.
Right now, the required computing power for the development of autonomous driving technology is sufficient. In simple words, AI training for automated driving can continue despite the limitations! Furthermore, the company started that it is working with Nvidia very closely.
Nio has been using the Drive Orin chip made by Nvidia for its assisted driving technology. In fact, the same chip is used my multiple electric car makers in mainland China.
The newest car from Nio, named ES7 SUV, was originally using 4 NVIDIA chips. But after the new restrictions, it seems that things could get difficult for the company, but they are saying otherwise.
A closer look at the restrictions set by the US government reveals that the H100 and A100 products of Nvidia are being targetted. Through these chips, the AI in the electric cars can be run and processed.
However, Nio is very clear that these restrictions will not put a dent on the long-term strategy of the company.