Xpeng launches AI-chipped G7 SUV to rival Tesla, Xiaomi

Xpeng, a Chinese electric vehicle (EV) manufacturer, has launched its G7 SUV, featuring the company’s proprietary Turing AI chip.

The vehicle was introduced on July 3, 2025, in Beijing, with a starting price of 195,800 yuan (US$27,325) and a top model priced at 225,800 yuan (US$31,600).

The G7 is positioned as a premium SUV in China’s EV market. It competes with Tesla’s Model Y and Xiaomi’s recently launched YU7.

According to Xpeng, the Turing AI chip allows the G7 to support an AI large language model with over 30 billion parameters.

This feature makes the G7 the first mass-produced car with Level 3 (L3) self-driving capabilities.

These capabilities enable hands-off driving while requiring driver supervision.

Pre-orders for the G7 began in June, with Xpeng reporting over 10,000 orders within the first 46 minutes.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chinese EV makers race to vertical integration with proprietary chips

Xpeng’s strategy of developing its in-house Turing AI chip represents a significant shift in how Chinese EV manufacturers are competing against global players like Tesla.

The company is investing around US$700 million annually in AI technology development, demonstrating substantial financial commitment to technological self-reliance 1.

Each Turing chip delivers 750 TOPS (trillion operations per second), with the G7 SUV incorporating three chips for a total of 2,250 TOPS, which Xpeng claims surpasses Nvidia’s automotive offerings 2.

This vertical integration approach extends beyond Xpeng, as the company is also collaborating with Volkswagen to integrate its Turing chips into upcoming VW models for the Chinese market, creating new revenue streams beyond vehicle sales 1.

The Turing chip’s ability to run AI models with up to 30 billion parameters allows Xpeng to claim the G7 as “the world’s first mass-produced car with Level 3 self-driving capabilities,” a key technical differentiator in a crowded marketplace 3.