Nuying Huang, Taipei;
Jack Wu, DIGITIMES Asia Wednesday
31 July 2024
TAIPEI, July 31,
2024 /PRNewswire/ -- In the realm of end-to-end
advanced autonomous driving solutions, both Nvidia and Tesla
are dominant forces.
Their continued development in this area means their paths are
bound to cross. However, they will likely face a common challenge:
the variables in the Chinese market.
According to the news report from the technology-focused media
DIGITIMES Asia, supply chain sources noted that Nvidia collaborates
with numerous Tier 1 suppliers and automakers, continuously
adjusting and enhancing its platform based on customer feedback and
demands. Unlike Tesla, which focuses primarily on cameras, Nvidia's
platform is compatible with various sensory components and systems.
Nvidia also has ample computational resources at its disposal,
ready to capitalize on the autonomous driving boom whenever it
occurs.
In L2 to L3 autonomy, Nvidia held approximately 50% market share
in 2023 for advanced driver assistance systems (ADAS)/Navigation on
Autopilot (NOA) in China's
passenger car market. Horizon Robotics had about 35%, Huawei
HiSilicon around 8%, and Texas Instruments (TI) about 4%.
Market estimations suggest that Nvidia has a substantial
database due to its existing platforms having accumulated data for
a while. Tesla, meanwhile, is a major automaker itself.
While Tesla couldn't find a licensing partner for its Full
Self-Driving (FSD) technology, it has been regularly collecting and
optimizing data for some time. Nvidia, on the other hand, may need
to rely on feedback from various customers.
Both end-to-end and generative AI require high-end GPU computing
power support, making Nvidia's GPUs highly sought after and
constantly in short supply. Tesla CEO Elon
Musk anticipates that Nvidia GPU prices will continue to
rise, repeatedly testing the limits of market acceptance.
In response, Tesla plans to address this issue with its in-house
AI chips, the HW5 or AI 5, expected to enter mass production in
2025. These chips are comparable to Nvidia's B200 in inference
capabilities, indicating a direct competition with Nvidia.
Additionally, Tesla's AI is not limited to autonomous vehicles but
extends to its upcoming humanoid robots, meaning that AI inference
will extend from vehicles to homes and factories.
Thus, Tesla and Nvidia are set for a showdown in high-end
autonomous driving. In particular, MediaTek's collaboration with
Nvidia to enhance smart cockpits and Qualcomm's expansion from
smart cockpits to high-end autonomous driving highlight the intense
competition between MediaTek and Qualcomm, a rivalry that has gone
from smartphones to future vehicles.
Variables in the Chinese market
However, geopolitical factors could pose challenges for these
companies in the Chinese market. As China has successfully advanced in the
automotive sector, the development of smart driving vehicles is
booming, with major cities having already launched Robotaxi
demonstrations. This indicates China's development vision requires
effectively controlling all software, hardware, and data.
This is also why the domestic brand Huawei is so highly
regarded. Its comprehensive capabilities, from semiconductor
manufacturing to smartphones, vehicles, and smart homes, allow it
to generate and connect data across different sectors.
In 2024, the Chinese car market is expected to be driven by
smart driving. As Tier 1, Huawei holds about 30% market share in
smart driving solutions. Other significant players, Momenta and DJI
Automotive, each hold about 20%. Most Chinese automakers with
notable market presence are currently evaluating potential
partners.
New Chinese automakers such as NIO, Li Auto, and Xpeng, also
have strong platform-building capabilities, although their
production and sales scales still need to grow. Additionally,
Xiaomi's EVs are selling well, indicating the competitive landscape
is continuously evolving.
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SOURCE DIGITIMES ASIA