Focusing on improving research capability in autonomous driving technology, Nvidia (NVDA, Financials) has dramatically increased its personnel in China. Emphasizing its strategic commitment in the fast expanding electric vehicle sector, the business hired employees in Beijing to promote the development of self-driving technologies this year.
Reflecting Nvidia’s dedication to create a whole technical ecosystem in China, the expansion also involves supporting teams working on networking software development and after-sales service. The company’s new headquarters in Zhongguancun, Beijing’s innovation center, helps to justify its regional growing activities.
By means of partnerships with top Chinese manufacturers such BYD (BYDDY, Financials), XPeng (XPEV, Financials), and Li Auto (LI, Financials), Nvidia seeks to incorporate its artificial intelligence and autonomous driving technologies into next car models. These alliances help the firm to be a major participant in the biggest EV market worldwide.
Notwithstanding these developments, Nvidia has major legal obstacles ahead. Initiated by China’s antitrust body, the State Administration for Market Regulation, has looked into the firm on possible irregularities connected to its 2020 purchase of Mellanox Technologies. This examination complicates Nvidia’s activities by aligning with geopolitical concerns between the U.S. and China.
The growth fits Nvidia’s solid financial situation. Driven by strong demand for its AI processors, the business said in its most recent earnings report a 94% year-over-year sales rise to $35.1 billion for the third quarter. Despite government inspection, analysts point out that Nvidia’s attempts to establish a stronger presence in China’s EV and technology industries might pay out handsomely over the long term.
This article first appeared on GuruFocus.
