BYD Partners with DeepSeek for Autonomous Technology, Posing Challenge to Tesla
Shenzhen, China - Chinese EV giant BYD (1211.HK) has entered into an agreement with DeepSeek, an AI technology company based in China, to jointly develop self-driving capabilities. This partnership poses a potential threat to global EV leader Tesla (TSLA).
DeepSeek has gained recognition for providing AI technology that rivals OpenAI's offerings at a more cost-effective and resource-efficient level. BYD, known for its cautious approach to autonomous technology, is now deploying its advanced driver assistance system (ADAS), God's Eye, to its entire vehicle lineup.
The God's Eye system leverages BYD's proprietary Xuanji architecture, combining onboard chips, cloud computing, and sensors with cloud AI and vehicle AI. This platform will be integrated with DeepSeek's R1 AI model to enhance the vehicle's AI capabilities.
Meanwhile, Tesla has invested heavily in developing its own autonomous technology, but regulatory hurdles have hindered its rollout in China. CEO Elon Musk has expressed frustration over restrictions on transferring training data outside the country, leaving Tesla in a "quandary."
In contrast, BYD's partnership with DeepSeek could give it an edge in the crucial Chinese EV market, where it is close to surpassing Tesla in sales. The affordability of BYD's EVs coupled with its autonomous software offerings could prove to be a game-changer.
However, BYD's potential threat to Tesla's US market is limited by the 100% tariffs imposed by the Biden administration on Chinese EVs.