Chinese language electrical car maker Nio and tech big Tencent agreed to work collectively on areas together with autonomous driving and high-definition mapping.

Tencent — a gaming, social media and cloud computing titan — has signed a cooperation settlement with Nio, considered one of Tesla’s rivals in China, because the corporations look to money in on Beijing’s concentrate on so-called new power automobiles.

The partnership might permit Tencent to do that, whereas additionally giving Nio the know-how backing of considered one of China’s greatest corporations. Tencent is already a serious investor in Nio, which is striving to distinguish itself from a sea of electrical automobile start-ups.

It comes after e-commerce agency Alibaba and Nio rival Xpeng in August opened a computing heart to coach software program for driverless automobiles.

Nio and Tencent stated on Monday they are going to work collectively on high-precision mapping methods for drivers. Nio will even be utilizing Tencent’s cloud computing infrastructure for information storage and coaching for autonomous driving. Driverless automobiles require enormous quantities of real-time information to be processed with a purpose to prepare algorithms.

Tencent’s partnership with Nio provides the corporate one other alternative to push into new enterprise areas as its core video gaming enterprise, which has been battered by strict home regulation, continues to face headwinds.

Nio in the meantime is dealing with its personal challenges, together with widening losses and stress on margins from increased materials prices and provide chain points.

Nonetheless, the corporate delivered 31,607 autos within the third quarter, marking a quarterly supply report for the start-up.

Nevertheless, China’s as soon as high-flying EV start-ups have seen their share costs hammered this 12 months as buyers turned away from development shares and China’s financial system confronted a slew of issues.