Nvidia Invests in WeRide: Shares Surge 90% Amid Strategic

Nvidia, a well-known chip maker, is making headlines with its strategic moves in China. These moves include a new investment in a Chinese self-driving startup called WeRide and the release of a modified RTX 4090 graphics card to comply with U.S. export regulations. Let's break down what this means in simple terms.

Investing in the Future of Driving

Nvidia recently disclosed that it has invested in WeRide, a Chinese company that's working on technology to make vehicles drive themselves. Think of it like this: WeRide is building the brains for cars, buses, and even cleaning trucks, allowing them to operate without a human driver. Nvidia's investment of around $25 million caused WeRide's stock price to jump by over 90%!. This shows that people are excited about the future of self-driving technology and Nvidia's role in it.

WeRide was started in Silicon Valley in 2017, but now it is based in China. They're testing their self-driving taxis in Guangzhou, China since 2019.

Playing by the Rules: A New Graphics Card for China

Due to restrictions imposed by the U.S. government to slow down China's advancements in artificial intelligence, Nvidia has had to create a special version of its RTX 4090 graphics card for the Chinese market. This new card, called the RTX 4090D, is less powerful than the one sold in other countries.

The RTX 4090D has fewer "CUDA cores," which are like the engines that power the graphics card. It also uses a bit less power. According to Nvidia, the RTX 4090D is about 5% slower in gaming and creating.

Nvidia's CEO, Jensen Huang, has stated that the company is committed to following the rules set by the U.S. government. The RTX 4090 D is only available in China. Nvidia worked closely with the U.S. government to develop this new graphics card, which will be available in January.

Why This Matters

For Gamers and Creators: Even though the RTX 4090D is slightly slower, it still provides a big boost in performance for gaming and other tasks.
For the Tech World: Nvidia's moves highlight the challenges and opportunities that companies face when navigating international trade regulations and technological competition.
For the Future of AI: Despite restrictions, China is still finding ways to access advanced chips for research and development in AI.

Other Investments

Nvidia's recent filing also showed other investment moves, including a $33 million investment in Nebius Group, which focuses on AI infrastructure. However, they reduced their investment in Arm Holdings, a British chip company. Nvidia also sold shares in companies like Serve Robotics and SoundHound AI.

The Bigger Picture

Nvidia's actions demonstrate how global companies are adapting to the changing landscape of technology and trade. By investing in Chinese startups like WeRide and creating specialized products to meet regulatory requirements, Nvidia is positioning itself to remain a major player in the global tech industry.

With inputs from agencies

Image Source: Multiple agencies

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