Li Auto’s Bold Ambition: Becoming an AI Powerhouse
Rethinking the Future of Electric Vehicles
Li Auto, a leading Chinese electric vehicle (EV) manufacturer, is shifting its focus towards artificial intelligence (AI) and robotics innovation. According to founder and CEO Li Xiang, AI is crucial for the company’s future success. Li Auto aims to develop a top-three foundational AI model in China, competing with major tech firms beyond the automotive industry.
The Rise of AI in China
China’s policymakers are betting on robotics innovation to drive economic growth, and Li Auto is at the forefront of this movement. The company’s AI assistant, Lixiang Tongxue, built on its self-developed foundational model Mind GPT, will soon be launched as a mobile app. This development comes amid rapid advances in AI technologies, including large language models (LLMs) that underpin popular services like OpenAI’s ChatGPT.
A New Era of Autonomous Driving
Li Auto’s push into AI is also driven by its goal to achieve level-4 autonomous driving, which can handle most driving scenarios. The company plans to reach this level within three years, paving the way for its venture into humanoid robots. This move will pit Li Auto against numerous rivals on the mainland that are trying to mass-produce AI-powered machines.
Talent Acquisition and Research
Li Auto has made AI a strategic direction since September 2022, considering it “the key to future competition.” The company has spent more than half of its 10 billion yuan (US$1.37 billion) research and development budget this year on AI, hoping to attract top talent through its high-profile push into AI.
China’s LLM Market on the Rise
According to a report from research firm IDC, China’s three largest providers of business-facing LLM services are Baidu, SenseTime, and Zhipu AI. The size of China’s LLM market was 1.76 billion yuan last year, but it is expected to undergo significant changes in the next two to three years.
Li Auto’s Financial Performance
Li Auto delivered 152,831 vehicles in the three months ended September 30 this year, a 45.4 per cent increase from the same period last year. Its third quarter revenue rose 23.6 per cent year on year, while profit jumped 20.7 per cent.
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