Nio Agrees To Chip Supply Partnership With AMD: What You Should Know

Nio Inc NIO and Advanced Micro Devices Inc AMD have entered a chip supply partnership, CnEVpost reported on Monday, citing the chipmaker.

What Happened: Shanghai-based Nio will reportedly use AMD’s EPYC family of processors in its high-performance computing (HPC) platform.

The move is expected to lift the electric vehicle maker’s AI deep learning training and shorten product development cycles.

The report said Nio will use the chips just in its vehicle development and not in production vehicles. 

Nio currently uses Qualcomm Inc QCOM, Mobileye and Nvidia Inc NVDA chips for its vehicle’s smart cockpit and driving chips. 

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Why It Matters: Nio is among a number of China-based electric vehicle startups that has quickly established a line of electric vehicles much ahead of global legacy rivals such as Ford Motor Co F, Volkswagen Group VWAGY and others. 

Nio had last year made its European foray with Norway and is currently further expanding its presence in other countries in the region.

The EV maker is also known to be exploring a foray into the mass-market segment with a new brand, in bid to scale.

Price Action: Nio stock closed 4% lower at $18.08 on Friday, according to data from Benzinga Pro.