NIO’s Shenji Chips Threaten Nvidia Sales as Oklo, Oracle Boost AI Partnerships
NIO’s CEO William Li said its new Shenji chips will cut reliance on Nvidia’s automotive AI modules, potentially denting gross margins. Meanwhile, Oklo shares climbed over 3% after partnering with Nvidia on AI-driven nuclear simulations, and Oracle Cloud Infrastructure received a Wedbush Outperform rating citing Nvidia collaborations.
1. NIO Develops Shenji In-House Automotive Chips
NIO CEO William Li highlighted the creation of its Shenji chip unit, spun off into an independent company, to better align silicon with the automaker’s sensor layouts and AI algorithms. By developing its own nanometer-scale automotive-grade chips, NIO aims to reduce dependence on Nvidia’s high-margin modules and improve long-term profitability while bearing upfront R&D costs.
2. Oklo Teams with Nvidia on AI-Powered Nuclear Simulations
Oklo extended gains for a second session, rising over 3% after announcing a collaboration with Nvidia and Los Alamos National Laboratory to apply AI and advanced simulations in designing next-generation nuclear reactors and fuel. The initiative targets small modular reactors for space missions, leveraging Nvidia’s GPU-accelerated computing to accelerate model validation ahead of planned launches in 2028 and 2030.
3. Oracle Cloud Infrastructure Earns Wedbush Outperform Rating
Wedbush launched coverage of Oracle with an Outperform rating and a $225 price target, citing the company’s growing role in AI infrastructure through partnerships with Nvidia and OpenAI. Oracle reported a 531% year-over-year increase in multi-cloud database revenue for fiscal Q3 2026 and holds $553 billion in remaining performance obligations, underpinned by contract-backed demand for Nvidia-powered services.