XPeng jolts the electric vehicle sector with its new SUV powered by a Turing AI chip

XPeng (NYSE:XPEV) is creating some waves in the electric vehicle sector after unveiling its Turing chip in its latest electric vehicle model.

The Turing chip is XPeng’s (NYSE:XPEV) groundbreaking, self-developed artificial intelligence processor that the company designed to power the next generation of smart electric vehicles and advanced mobility platforms. Developed internally by XPeng (XPEV), the Turing chip was said to represent a major leap in automotive AI, offering unprecedented computing power and efficiency tailored for autonomous driving and intelligent cockpit systems. The 40-core processor and two proprietary neural processing units set the chip up to run large-scale AI models through its impressive computing capability of 700 trillion operations per second per chip.

The Turing chip is equipped with a 40-core processor and integrates two proprietary Neural Processing Units (NPUs). The specialized architecture of the chip is optimized for neural networks and large AI models.

Notably, XPeng’s (XPEV) Turing chip debuted this month in the G7 SUV. The new G7 electric SUV in China entered the fiercely competitive electric crossover market with a starting price of just 195,800 yuan ($27,325) and is seen as positioned squarely to compete with the Tesla Model Y (TSLA) and the new Xiaomi (OTCPK:XIACF) YU7. Early reviews of the AI-enhanced G7 have been positive, especially with the Turing chip seen as a competitive edge.

The chip development is seen as a new phase in the partnership between XPeng (XPEV) and Volkswagen (OTCPK:VLKAF). In July 2023, Volkswagen (OTCPK:VLKAF) invested $700 million for a 4.99% stake in XPeng (XPEV), initiating a strategic alliance to co-develop electric vehicles tailored for China. Looking ahead, XPeng (XPEV) is actively pursuing partnerships to supply the chip to other automakers. “Developing chips is fundamentally a long-term commitment, as Xpeng envisions doing a lot of things across cars, aircraft, and robotics,” XPeng (XPEV) CEO He Xiaopeng stated in an interview.