Nvidia invests in self-driving after offloading AI chipmaker ARM

According to a 13F regulatory report filed on Jan. 31, the AI giant now owns 1.7 million shares of WeRide. The announcement sent WeRide’s stock surging over 90% in premarket trading.

The Guangzhou-based WeRide, which specializes in robotaxis, autonomous minibuses, and freight sanitation vehicles, has been expanding its reach in the self-driving space. Founded in Silicon Valley in 2017, the company later incorporated in the Cayman Islands before launching China’s first robotaxi service in 2019. It debuted on Nasdaq in October 2024, attracting major AI investors looking to ride the autonomous tech wave.

Nvidia exits key AI investments

At the same time, Nvidia has cut its stake in Arm Holdings by 44%, bringing its investment in the UK-based chip designer down to $136 million. Even with the reduction, Arm remained Nvidia’s largest equity holding at the end of 2024.

The tech giant also pulled out of multiple AI-related investments, including Serve Robotics, SoundHound AI, and Nano-X Imaging. The sell-offs triggered market turmoil, with Serve Robotics tanking 36% in premarket trading and SoundHound AI plummeting nearly 25%.

Meanwhile, Nvidia scooped up a $33 million stake in Nebius Group, an AI infrastructure company. The investment sent Nebius stock soaring over 10% before markets opened.

While Nvidia reshuffles its portfolio, China’s tech sector is making major leaps in AI. A peer-reviewed study from Chinese researchers revealed that domestically made GPUs had achieved a near-tenfold performance boost, surpassing some of the most powerful US supercomputers that rely on Nvidia’s hardware.

The research team credited the performance surge to advanced software optimization techniques that allowed Chinese-designed chips to outperform American-made processors in certain scientific computations.

A researcher involved in the study noted: “This development significantly reduces reliance on foreign semiconductor technology.” The findings suggest that Washington’s escalating tech sanctions may have unintended consequences, pushing China toward greater self-sufficiency in critical chip technology.

Industry experts warn that software workarounds won’t replace cutting-edge hardware in the long run. But Beijing’s push for domestic innovation shows no signs of slowing. Large-scale simulations for urban planning, flood defense, and other complex models require massive computing power, making these a boost for China’s AI dominance, according to Goldman analysts.

Nvidia’s latest moves suggest the company is betting big on AI-driven mobility, even as the global chip war intensifies. The shift from traditional semiconductor investments to self-driving and AI infrastructure could signal a new era for the tech powerhouse.

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