Toyota and Nissan join Tencent and Baidu in China's AI arms race

Toyota Motor, from Japan, will partnership with Tencent from China, while Nissan will join Baidu – the companies said on Thursday (25), partnerships that highlight the importance of artificial intelligence for automakers.

Separate announcements from two of Japan's biggest automakers at the Beijing auto show also underscored Japanese manufacturers' attempt to confront the enormous technological changes that have disrupted their once-enviable positions in the Chinese market.

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Just a few years ago, Japanese automakers were some of the most prominent foreign brands in China. More recently, they were left blindsided as a local manufacturer led by BYD.

Both Tencent, a gaming and social media giant, and Baidu, China's top search engine, have been leaders in the country's generative AI race.

Toyota, the world's biggest automaker by volume, will include technology from tech giant Tencent in a Chinese-made passenger vehicle that goes on sale this year, said Toyota's Yiming Xu, director of brand and communications for China.

The companies will offer services through Tencent's strengths in big data, AI and cloud computing, Xu said. Nissan

Furthermore, the director stated that Baidu signed a memorandum of understanding to carry out research on AI and so-called “smart cars”. Nissan will use Baidu's generative AI on its platform to study the feasibility of future technological development.

The partnerships also show how competitive China has become for car manufacturers, even global giants like Toyota.

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