U.S. offers blow to China tech ambitions with Nvidia chip ban

The U.S. government’s new restrictions on the capability of Nvidia to offer synthetic intelligence chips to Chinese consumers threatens to offer a large blow to the country’s improvement of a sweeping variety of chopping-edge technologies.

The Santa Clara, California-centered corporation disclosed in a regulatory filing this week it can no for a longer period market specific significant-conclusion chips in China with out a license from Washington.

These AI accelerators go into massive data facilities to teach AI models for tasks these kinds of as autonomous driving, picture recognition and voice help.

Nvidia has almost a 95 percent share of that current market, in accordance to Fubon Securities Expense Products and services estimates, and the relaxation is accounted for by State-of-the-art Micro Equipment, a fellow US chip business that is certain by the very same export constraints.

With no entry to their equipment, tech giants that depend on large server farms to acquire almost everything from electrical and self-driving vehicles to social and cloud solutions will be at a disadvantage to intercontinental level of competition.

“This is the new Cold War reality and broader export limits are part and parcel of this,” stated Amir Anvarzadeh of Asymmetric Advisors.
“The export limitations will broaden and it will effects semiconductors, AI, autonomous systems and biotech.”

The escalated trade curbs, which Washington did not signal it was looking at prior to imposing them, add to existing sanctions and limits on exports of chipmaking equipment to China.

Chinese semiconductor firms are presently denied accessibility to the most superior lithography products from the Netherlands’ ASML Holding and reducing-edge gear from American suppliers which includes Lam Analysis.

The the latest CHIPS Act in the U.S. forces worldwide chipmakers to proficiently decide on among investing in the U.S. and China.

Now that Washington is restricting entry to AI items as perfectly, it’s developed another chokepoint for Beijing’s tech expansion although working on rising its possess domestic semiconductor ability.

The head of just one of China’s foremost EV brands rapidly decried the limitations.

The steps will “bring a obstacle to the cloud schooling of all autonomous driving,” He Xiaopeng, the CEO of XPeng, reported on his WeChat account.

Nvidia is a leader in supplying the hardware for autonomous driving — both equally for building the algorithms in massive server farms and providing the onboard processors for automobiles to be conscious of their surroundings.

Washington has told Nvidia that the new curbs are developed to stop advanced AI equipment being utilised for or diverted to military needs by China or Russia.

In June of this year, Washington, DC-primarily based consider tank The Heart for Protection and Emerging Technological innovation explained almost all of the 97 AI chips in community Chinese military services buy data concerning April and November 2020 were built by U.S. providers Nvidia, Intel, Microsemi or Xilinx, which is now aspect of AMD.

However, the brunt of the impression will be felt by Nvidia alone and China’s biggest tech corporations these types of as Alibaba Group and Tencent,

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Jaguar Land Rover, Nvidia ally in vehicle software arms race

A NVIDIA logo is revealed at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake/File Image

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DETROIT, Feb 16 (Reuters) – Luxurious automaker Jaguar Land Rover (TAMOJL.UL) and Silicon Valley artificial intelligence company Nvidia (NVDA.O) stated Wednesday they will collaborate to develop the computer brains and anxious systems for Jaguars and Land Rovers launching in 2025 and beyond.

The corporations did not disclose monetary terms of their multiyear settlement. The collaboration is a significant-profile get for Nvidia Corp’s work to increase its attain in the car marketplace, creating on its foundation in gaming, synthetic intelligence and high-powered chips and software employed in servers.

For Jaguar Land Rover Automotive Plc, the partnership with Nvidia offers it a perfectly-funded ally as it tries to catch up with Tesla Inc (TSLA.O) and other luxurious motor vehicle rivals in a electronic technology arms race.

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“We can now accelerate our in-car or truck computer software,” Francois Dossa, JLR’s govt director for method, mentioned in the course of a convention connect with.

Functioning with Nvidia engineers, Jaguar Land Rover designs to create cars that can push by themselves underneath specified circumstances, park autonomously and provide additional information and facts and computer software-driven functions to drivers, the businesses claimed. The new Jaguars will be upgradable – as Tesla autos are these days. The automaker mentioned it will use Nvidia technology to energy simulations applied to prepare autonomous automobiles.

Jaguar Land Rover has a earlier offer with Alphabet Inc’s (GOOGL.O) Waymo unit to deploy autonomous driving technologies. Dossa claimed the Waymo collaboration was constrained to the Jaguar I-Pace electric SUV. The Nvidia alliance handles all Jaguar and Land Rover versions to be launched from 2025.

Nvidia technology will act as the brains and the anxious procedure of Jaguar Land Rover motor vehicles starting up in 2025, reported Nvidia’s vice president of automotive, Danny Shapiro.

Nvidia previous thirty day period announced bargains with quite a few Chinese electrical auto makes. The organization has reported it has $8 billion in automotive enterprise booked in excess of the next six yrs. Shapiro stated the organization will update the determine in the course of an trader working day scheduled for March 22. study far more

Jaguar Land Rover, a subsidiary of India’s Tata Motors Ltd (TAMO.NS) has been having difficulties with increasing expenses and semiconductor shortages. Jaguar Land Rover noted a slender pretax gain for the quarter ended Dec. 31, but Tata Motors described a greater quarterly decline than expected. browse extra

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Reporting By Joe White editing by Jonathan Oatis

Our Standards: The Thomson Reuters Rely on Ideas.

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Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA)

David Becker/Getty Images News

NVIDIA (NVDA) has been on an incredible run of late, fueled by tremendous growth across its business segments. Revenue has more than doubled over the past 3 years, resulting in explosive economies of scale. Gross margins are up nearly 500 basis points while operating margins are up over 900 basis points. Free cash flow has increased by 2.3 times over that span.

NVDA growth and margin expansion

NVDA (NVDA Investor Presentation)

While the business itself is clearly very strong and growth momentum is impressive, the expected slowdown in growth and the premium valuation multiples attached to the stock – even after the recent pullback in the share price – imply that it is not a Buy at the moment. On the other hand, the explosive growth potential in the automotive business could be an x-factor that drives continued outperformance for the company. In this article, we will overview the business as a whole and then discuss the qualitative aspects of the automotive business that indicate massive growth could materialize there.

NVDA Stock Has A Wide Moat Business Model

Even more importantly, the company possesses a wide moat due to its intellectual property. Thanks to its leading position in the GPU space, the company plays an integral and increasingly prominent role in the global economy.

As the leader in the space, NVDA is able to attract among the very best talent in the industry that it retains through generous compensation packages and a large research and development budget. In our view, this positions the company to retain its technical edge in the industry and continue to innovate to compound its intellectual property driven competitive advantages. This makes the business model fairly low risk and gives it tremendous long-term potential. We also see this competitive advantage on display in its superior profitability metrics compared to its rival Intel (INTC):

Nvidia vs Intel: return on equity and return on invested capital
Data by YCharts

NVDA Stock Has A Massive Growth Runway

Thanks to its world-class brain trust, strong base in technology and basic research, and strong macro tailwinds for its industry, NVDA has nearly limitless opportunities to grow. The company has already begun expanding into new markets, including data centers and autonomous driving:

NVDA Investor Presentation

NVDA (Investor Presentation)

These initiatives have already gained substantial momentum as its data center business saw 53% year-over-year growth in the first nine months of 2021 and its automotive business saw 13% year-over-year growth in the first nine months of 2021.

Meanwhile, its core gaming business soared by 72% year-over-year and its professional visualization business was its fastest-growing business, up 97% year-over-year, though it is still dwarfed in size by its gaming and data center businesses.

Long term, the data center and the automotive businesses should see significant sustained growth as both markets are massive and set to grow for many years to come. With artificial intelligence technologies exploding as well as the metaverse just beginning to take off, NVDA has enormous potential to increase the applications of and markets for its technologies.

One way in which NVDA has been aggressively pursuing

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Automotive Tech To Be Highlighted At Fall Nvidia GTC

As we approach two years of pandemic, on the whole it has been a tragedy in many ways. But there have been some positive developments as well. Among those is the evolution of virtual conferences and trade shows. While serendipitous hallway conversations are a huge benefit of conferences, no one has the time or resources to attend every relevant event. Thus, having events like Nvidia Fall GTC 2021 online and free from November 8-11 makes it accessible to far more people than could ever go in person. Like past GTCs this event will feature lots of automotive related content. 

For those not familiar with GTC, it is Nvidia’s GPU Technology Conference. It’s a great place for anyone interested in learning about or working with Nvidia’s hardware or software technologies to find out more about what’s happening in the field.

As always, Nvidia founder and CEO Jensen Huang will be doing a keynote presentation on Tuesday Nov 9, 2021where he will no doubt be sharing lots of fascinating nuggets about the latest in Nvidia technology as well as laying out the vision for where the company is going. While the company started off developing 3D graphics chips to power computer video games, its graphics processing units are capable of much more data centers, simulation, automated driving to of course cryptocurrency mining although Huang is unlikely to discuss that last one. 

What he will likely do is provide updates on the Drive Sim Omniverse platform, introduce some new partners that are utilizing Nvidia technologies in the vehicle and probably talk about some of the applications that will be debuting the new Orin system on a chip in 2022. Among the companies rolling out Orin-powered vehicles next year are Volvo, Polestar, Xpeng and others. The keynote may also feature some news on how Nvidia is going to enable the building of high-definition maps for automated driving following its recent acquisition of DeepMap. Jensen Huang’s keynote premieres at 9am CET on Nov 9, 2021and will be replayed at 11am EST/8am PST. 

On Monday Nov. 8, the day before Huang’s keynote, there is a full slate of sessions specifically focused on driving. Among the many speakers that are presenting that day are Ödgärd Andersson, CEO, Zenseact, Guillaume Binet, VP of Software Infrastructure, Motional, and Axel Gern, CTO Autonomous Technology Group, Daimler Trucks among others. 

Roy Fridman, VP Business Development, Foretellix will talk about the challenges of ADAS and AV Safety – Dealing with an Infinite Test Space. The world is such a wide and varied place that it’s simply not possible to test every

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