DJI Automotive, the automotive arm of Chinese drone maker DJI, is reportedly set to receive investment from BYD (OTCMKTS: BYDDF) and FAW Group, promising to become a rival player to Huawei in China’s smart driving space.

DJI Automotive has already received investment intent from BYD and FAW, and the parties are currently moving forward with the financing process, local media outlet 36kr reported today.

In terms of valuation, DJI Automotive is asking for about 10 billion yuan ($1.4 billion) from investment institutions, according to the report.

Meanwhile, Huawei is spinning off its automotive business unit and has set up a joint venture with Changan Automobile called Newcool.

The joint venture is valued at more than RMB 100 billion, the 36kr report noted.

A number of EV makers, including Xpeng and Li Auto, currently use two Nvidia Orin X chips to power the smart driving systems on their top-trim models, delivering a total of 508 Tops of computing power. Nio’s models, on the other hand, currently come standard with four Orin chips, delivering 1,016 Tops of computing power.

In a report on April 7, 2023, 36kr said that BYD will use the assisted driving solution provided by DJI Automotive in some of its models.

With its unique algorithmic solutions and cost-control capabilities, DJI Automotive is providing low-cost smart driving solutions and is already being used in models including SAIC-GM-Wuling’s Baojun-branded Yunduo EV and the Chery iCar 03, 36kr’s report today noted.

($1 = RMB 7.1585)