NVIDIA’s CEO, Jensen Huang, has arrived in a country that’s always in the spotlight: China. He went there for various reasons, some of which seem to be somewhat secretive. The company’s statements have little to do with their actual concerns, as Huang arrived in the land of the Red Dragon to celebrate the Chinese New Year with his employees and thank them for their hard work. However, it seems that behind the scenes, NVIDIA is in China to focus on AI chips for electric cars, and not let Huawei gain an edge in the market.
From China, it is said that the purpose of Huang’s visit is his annual meeting with employees. For this occasion, he brought a red suitcase with matching envelopes, handing out one to each employee as part of a lottery-style game. However, the winner of this game seems to be more than just an employee; it would also be a significant rival for Huang.
NVIDIA arrived in China to dance…and more
During the celebrations, Huang entertained his employees by dancing and wearing a typical red shirt with a floral pattern. The CEO wanted to express gratitude to the nearly 3,000 employees in the country, as they had worked diligently to adapt to the changes implemented after U.S. sanctions and blockades.
In addition to the celebrations, it appears that Huang had other plans. Last year, he wanted to travel to China but had to cancel due to impending U.S. sanctions. As a result, the NVIDIA CEO had not visited China for several years.
What makes the trip particularly newsworthy is that someone inside the company leaked the real purpose of Huang’s visit: to compete against Huawei.
Huang and NVIDIA see Huawei as a direct competitor in AI chips for electric cars from China
Not only in the GPU for AI segment but also in the automotive sector. The booming market after AI is experiencing a slowdown in sales and shipments, which could worsen in 2024, but it remains the most profitable sector for the company after GPUs in general.
Huawei intends to grab a larger piece of the pie, and since China is the largest exporter of electric vehicles, the market is vast. In this market, NVIDIA holds a prominent position, with over 80% of the autonomous driving chips sold to manufacturers like BYD or NIO. However, as mentioned, Huawei is pushing hard to gain market share.
Speculation suggests that NVIDIA sees the Chinese competitors as a serious threat and may have held secret meetings with top executives from major car companies to understand their needs and create products that satisfy them, ultimately capturing a larger share of the future market.
With its limitations, can Huawei compete with NVIDIA in a sector eager to implement AI in cars within a few years? What do you think of Huang’s elaborate dance performance to distract the media? And finally, what will Huang do now, knowing that industry giants are restricted by performance limitations and do not use their AI chips?
The article “NVIDIA lands in China: aims at Huawei, celebrates the new year with employees dancing, and supports the automotive sector” first appeared on El Chapuzas Informático.
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