Geopolitics, AI breakthroughs and Level 4 autonomy: The battle over data centers and compute power

Even with advancements from companies, such as DeepSeek in AI model development, it remains essential to assess how these models can be adapted to vehicle architectures considering the specific performance and memory requirements of automotive SoCs. For now, the autonomous vehicle industry remains reliant on domain-optimized AI models built specifically for automotive applications.

In the March 2024 electrical/electronic (E/E) semiconductor report titled "Global chessboard of chips: geopolitical shifts reshaping the automotive semiconductor landscape", we highlighted that restrictions on mainland China's access to critical AI chips and autonomous vehicle technology may not solely serve to limit its capabilities. Instead, these measures could potentially accelerate mainland China's efforts to develop domestic alternatives. Over recent years, mainland Chinese companies have made significant advancements in AI technologies, exemplified by DeepSeek's recent breakthroughs in large language models. This observation supports our analysis regarding the AI chip ban, suggesting that rather than hindering mainland China's progress, these restrictions may stimulate its ecosystem and research and development efforts, prompting a response to US measures.