Nio announced on Thursday that its intelligent-driving chip subsidiary has secured 2.257 billion yuan ($330 million) in its first external funding round, as the Chinese EV maker moves to monetize one of its most capital-intensive technology investments.
Under the definitive agreements, a group of Chinese investors will subscribe for newly issued shares in GeniTech Co Ltd — known as Shenji — the entity primarily responsible for Nio‘s smart driving chip operations.
The transaction remains subject to customary closing conditions, according to the EV maker.
Immediately after the announcement, Nio‘s US-listed shares are trading nearly flat at $5.18.
Upon completion, a Nio subsidiary will retain a controlling 62.7% equity interest in Shenji and will continue to consolidate its financial results.
The investors will collectively hold 27.3%, while entities administering Shenji’s employee share incentive plan will hold the remaining 10.0%.
The company did not disclose the post-money valuation or the identity of the investors in its filing.
However, earlier on Thursday, LatePost reported that participants in the round include the Hefei local industry fund, Nio Capital, IDG, and an unnamed listed semiconductor company, with a post-investment valuation approaching 10 billion yuan ($1.4 billion).
The media outlet Leiphone separately reported that subsequent financing rounds have already commenced.
The 10% allocation for an employee share incentive plan signals that Nio is structuring Shenji for potential standalone growth, with built-in mechanisms to retain the chip division’s technical talent.
Nio launched its semiconductor unit in 2021 and has since developed two in-house chips: the Yangjian for LiDAR control and the Shenji NX9031 for autonomous driving computation.
The latter, which Nio describes as the world’s first automotive-grade 5nm intelligent driving chip, completed tape-out in July 2024 and was first deployed on the flagship ET9 sedan in March 2025.
CEO William Li has previously stated the chip’s R&D cost was equivalent to building 1,000 battery swap stations, and that Nio spent over $300 million on Nvidia Orin-X chips in 2024 alone.
The company began licensing the Shenji NX9031 to external customers in the automotive and robotics industries last November.
In January, Nio expanded its chip footprint by registering two subsidiaries in Hangzhou through Shenji — its first chip presence outside Beijing, Shanghai, and Hefei.
Li has targeted full-year profitability in 2026.
Nio said on Thursday that it will report its fourth-quarter 2025 earnings results on March 10.
