Following the call from Beijing, China’s auto industry is racing to embed AI into almost everything

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Following the call from Beijing, China’s auto industry is racing to embed AI into almost everything

BEIJING, April 24 (Reuters) – It took China 25 years to dominate the electric vehicle market.

Now, the country’s auto industry is pushing for another hurdle: embedding artificial intelligence into cars that will make the next generation of EVs not only network-connected but self-reasoning machines running on Chinese chips and software.

China’s most recent five-year plan, released earlier this year, laid out a blueprint for “AI Plus,” a national project to embed AI systems into manufacturing, healthcare and nearly every corner of the economy.

Part of that aim is to break China’s reliance on high-end semiconductors – a trade chokepoint dominated by the US.

“There is no longer any difference between a technology company and a car company,” Nissan Motor China chief Stephen Ma told reporters on the sidelines of the Beijing auto show, which opened on Friday. “The AI-developed vehicle is very fast and it is fast in China.”

In recent days, Chinese automakers and their suppliers have flooded the region with investment commitments and new AI systems. Some immediate applications seem to be growing. Analysts say the long-term stakes are high.

China’s automakers are now so advanced that they are beginning to upend the global car industry, said Francois Rudier, secretary-general of the International Organization of Automobile Manufacturers, a federation of trade groups representing the world’s auto industry.

“There is no infection,” Rudier told Reuters in Beijing. “This is a revolution.”

Car is an agent

Xpeng says its updated AI model allows drivers to give car commands — such as, “Park near the entrance to the shopping center” — instead of specifying a location on a map. Xpeng vehicles can use cameras to navigate without maps or coordinates.

Xiaomi, an appliance and phone maker that entered the EV business three years ago, released an updated AI model after midnight on Thursday.

Xiaomi says the AI-enabled HyperOS operating system in its cars will allow drivers to handle complex to-do lists, restaurant reservations, place coffee orders and collect notes from the road. The system can detect if drivers seem stressed or agitated and adjust lighting and music for their arrival at home.

“There’s a lot of focus on AI in other parts of the world about how can we use it to improve business? Chinese automakers aren’t talking about that,” said Dan Hersch, global co-leader for automotive at consulting firm AlixPartners. “The AI ​​they’re building will make the car easier to drive, easier to interact with, easier to do all the things that would otherwise have to be attempted.”

Huawei, which has shifted its traditional focus on telecommunications to develop businesses in chips, AI and connected cars, said it would invest more than $10 billion over the next five years to boost computing power for smart driving.

While automotive sales make up a relatively small part of Huawei’s portfolio, it is the company’s fastest-growing segment.

Ahead of the auto show, Chinese chipmaker Horizon Robotics, which competes with Qualcomm, launched its Starry 6 processor that integrates cockpit and driving functions with the ability to handle up to 12 screen displays in a vehicle.

Many Chinese EV companies are following Tesla by designing their own chips to reduce dependence on Nvidia. These include Xpeng, Li Auto, BYD, Geely and Leapmotor.

NIO, which shuttered its chip unit, is developing its own semiconductors as a way to cut costs and boost earnings by swapping out Nvidia, CEO William Lee said.

“We are open to the whole industry and we welcome them to use (our chips),” Lee told Reuters.

Some auto manufacturers used the Beijing Auto Show to say they heard Beijing’s message on strategic innovation loud and clear. Dongfeng Motor – one of the big four state-owned carmakers – said it would build cars using “embedded AI technology” in line with China’s long-term plans for the sector.

Dongfeng is working with Huawei on a smart driving system to compete with privately owned rivals.

“When the nation calls, Dongfeng answers,” said Chairman Yang Qing.

(Reporting by Ju-Min Park, David Dolan, Nick Carey, Pan Che and Zhang Yan in Beijing; Writing by Kevin Krolicki; Editing by Thomas Derpinghaus)

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