Auto Firms Step Up AI Race: Li Auto Plans Chip R&D, XPeng Unveils P7+
With $Tesla Motors(TSLA)$ 's Robotaxi on the verge of debut, $Li Auto(LI)$ $LI AUTO-W(02015)$ plans to establish a chip R&D team in Hong Kong, while $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ 's new P7+ model has made its appearance. The competition in the AI sector among car manufacturers seems to be intensifying.
1.Li Auto's Chip R&D Expansion
Following $NIO Inc.(NIO)$ $NIO-SW(09866)$ ’s launch of the Shenji autonomous driving chip and XPeng's Turinng chip, Li Auto is now entering the chip development arena.
Reports say that Li Auto intends to set up a chip R&D office in Hong Kong to recruit AI chip architects and talent for strategic investments related to chip technology.
An insider from Li Auto revealed that this team is expected to consist of around 10 members and will fall under the systems operation department. Their main responsibility will be software development related to autonomous driving chips. This isn't Li Auto's first overseas foray into chip R&D, they established an office in Singapore last year and have teams in Beijing and Silicon Valley as well.
Currently, Li Auto is developing two types of proprietary chips: one for AI inference in autonomous driving scenarios and another for SiC power chips used in motor control. The AI inference chip features an architecture similar to Tesla's Hardware 5.0, with about 40 billion transistors. It’s currently with TSMC for production and is expected to be mass-produced and installed in vehicles by 2026.
Li Auto is prioritizing autonomous driving in its investment and marketing efforts. Li Auto’s founder mentioned that over 99% of users are now experiencing Li's smart driving, with total mileage for full-scene NOA exceeding 1.11 billion kilometers.
According to the latest delivery data from Li Auto, new vehicle deliveries in September surged by 48.9% year-over-year, hitting a record high of 53,709 units in a single month. Q3 deliveries grew by 45% compared to the previous year, totaling 152,831 units.
2.XPeng P7+ Unveiled
On the afternoon of October 10, XPeng Motors officially unveiled its new model, the P7+.
According to XPeng’s official website, the P7+ is positioned as a mid-to-large sedan, measuring over 5 meters in length with a wheelbase of 3 meters. It boasts a family-style interior design and incorporates AI Eagle Eye vision technology, offering a CLTC bettery electric range of over 700 kilometers.
At the launch event, XPeng founder described the P7+ with several terms: SUV-level coupe, C-class dimensions, D-class space, “space monster,” and a five-seat MPV.
In terms of autonomous driving, the P7+ utilizes AI Eagle Eye vision system, enhanced by two NVIDIA Orin-X autonomous driving chips. This setup significantly boosts computing power, perception, and recognition speed. The perception distance has increased by 125%, while recognition speed has improved by 40%.
3.Expansion into Robotaxi
Concurrent with the P7+ launch, XPeng is also expanding its Robotaxi team, including positions such as Operations Director and Senior Operations Manager.
He Xiaopeng previously predicted that the Robotaxi industry would reach a turning point by 2026, and XPeng plans to introduce a highly competitive Robotaxi by then.
As Tesla's Robotaxi approaches its debut, it raises the question: will XPeng’s Robotaxi and other automakers’ autonomous driving technologies prove to be formidable competitors?
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