Li Auto, China's Tesla Competitor, Ventures into AI and Robotics
Li Auto, a prominent rival to US electric vehicle giant Tesla in China, is embarking on a new journey to transform itself into an artificial intelligence (AI) company and potentially delve into the production of humanoid robots. Founder and CEO Li Xiang expressed that AI is crucial for the future of Li Auto, aiming to establish its foundational AI model among the top three in China, competing with major tech players beyond the automotive sector.
The company is set to introduce a mobile app for its AI assistant, Lixiang Tongxue, based on its self-developed foundational model, Mind GPT. While Li Auto's Mind GPT model was not among the top-ranked AI models, the company is determined to make significant strides in the AI landscape.
Li Auto's strategic shift towards AI aligns with the rapid advancements in AI technologies, particularly in large language models (LLMs), which are pivotal for various services. The company's foray into robotics, including the development of humanoids, is planned for the future, contingent on achieving level-4 autonomous driving capabilities.
Li Auto's move into robotics will position it against several competitors in China striving to mass-produce AI-driven machines. The company's emphasis on AI, encompassing autonomous driving technology, has been a focal point since September 2022, viewed as essential for future competitiveness.
In a bid to attract top talent, Li Auto has allocated a significant portion of its research and development budget towards AI initiatives. The company's commitment to AI is evident, with over half of its 10 billion yuan (US$1.37 billion) R&D budget for the year dedicated to AI-related projects.
China's AI landscape is evolving rapidly, with key players like Baidu, SenseTime, and Zhipu AI leading the way in business-facing LLM services. Although the size of China's LLM market was relatively modest last year, the industry is poised for substantial transformations in the coming years, as per a report from research firm IDC.
Li Auto's financial performance remains robust, with the company reporting a 45.4% increase in vehicle deliveries in the third quarter of this year compared to the same period last year. Additionally, third-quarter revenue surged by 23.6% year-on-year, accompanied by a 20.7% rise in profit.
Li Auto aims to transition into an AI company and potentially venture into robotics, aligning with China's push for innovation in AI and robotics.
The company plans to introduce a mobile app for its AI assistant, Lixiang Tongxue, based on its self-developed foundational model, Mind GPT.
Li Auto's strategic focus on AI and autonomous driving technology underscores its commitment to future competitiveness and talent attraction.
Source: SCMP