Tencent inked a cooperation agreement with Nio in China, CNBC reports.
The firms look to cash in on Beijing’s focus on new energy cars.
The partnership could allow Tencent to do this while also giving Nio the technology backing of one of China’s most prominent firms.
Tencent is already a significant investor in Nio, striving to differentiate itself from a sea of electric car start-ups.
Nio and Tencent will work together on high-precision mapping systems for drivers.
Nio will also use Tencent’s cloud computing infrastructure for data [storage and training for autonomous driving]
(Apple Supplier TSMC Bags Tesla As New Client For EVF Chips - Tesla (NASDAQ:TSLA), Taiwan Semiconductor (NYSE:TSM) - Benzinga).
Tencent’s partnership with Nio gives the company another opportunity to push into new business areas as its core video gaming business [continues to battle regulatory headwinds]
Nio, meanwhile, is facing challenges, including widening losses and pressure on margins from higher material costs and supply chain issues.