Li Xiang talks about "Li Auto's" latest strategy - transforming into an AI company, aiming to be in the top 3 domestic large models, and building a unified VLA model in the future to become your silicon-based family

In 2024, Li Auto became a major highlight in the Chinese smart electric vehicle market with a cumulative delivery volume exceeding 1 million vehicles. However, behind this brilliance, Li Auto is undergoing an unprecedented transformation.

Recently, CEO Li Xiang announced a bold strategy in an exclusive interview with Tencent Technology's Zhang Xiaojun — Li Auto is no longer just an automobile manufacturing company, but an AI company.

From Range Extender to the Considerations Behind AI

As the pure electric vehicle trend sweeps the market, Li Auto has emerged with its "range extender" technology. However, now that competitors are gradually following this technological route, Li Xiang has chosen to be different once again.

He believes that the "electrification" of electric vehicles is only the first half, while the real second half is "intelligence." However, this intelligence is not the traditional software intelligence, but a complete evolution empowered by AI.

Li Xiang stated: "Cars will evolve from transportation tools of the industrial age to spatial robots of the AI era. Electrification is a transitional phase, while AI is the core of future competition."

This transformation did not come suddenly. Li Xiang revealed that as early as September 2022, AI had been established as a strategic core within Li Auto, and it was publicly announced at the beginning of 2023. He admitted that the emergence of ChatGPT accelerated the publicization of this strategy from "hidden" to "overt."

"ChatGPT has opened a new AI era, reinforcing our belief — smart cars must be centered around AI, not just hardware intelligence."

Li Xiang Classmate & Intelligent Driving

AI applications have not remained in the conceptual stage; Li Auto has already invested heavily in research and development. Li Xiang revealed that nearly half of Li Auto's R&D investment is allocated to AI.

Two core AI products are driving the implementation of this strategy:

1) Li Xiang Classmate: Initially a in-car assistant, it is now expanding to mobile applications and will eventually cover multi-terminal scenarios such as home and glasses.

"We have a user base of 1 million households, which allows Li Xiang Classmate to quickly expand to more scenarios, providing users with a consistent AI experience."

2) Intelligent Driving: From ADAS (Advanced Driver Assistance Systems) to L4 autonomous driving, Li Auto insists on self-research, covering domain controllers, vehicle platforms, and core algorithms. Li Xiang even proposed a new industry concept: the "VLA" model, which refers to the deep integration of "Vision, Language, and Action" AI capabilities.

"Large models are the operating systems and programming languages of AI, and Li Auto must master this core technology."

In addition, Li Xiang stated that the realization of L4 autonomous driving will make family vehicles cheaper and more efficient. However, he does not believe that Robotaxi (autonomous taxis) will replace family vehicles; rather, he hopes to enhance the family vehicle experience, encouraging more people to choose to own their smart cars.

"Family vehicles are not just transportation tools; they are a moving 'home.' They represent high-quality companionship and a safe, comfortable environment."

AI, The Future of Li Auto

Li Xiang views AI as the cornerstone of all future businesses. In his vision, the ultimate goal is to connect the physical world with the digital world through AI, achieving comprehensive empowerment of technology in human life.

He divides the development of AI at Li Auto into three stages:

1) Augmentation Stage: AI serves as an auxiliary tool, providing efficiency support to humans. For example, Level 3 autonomous driving, where users still need to take responsibility for driving outcomes.

2) Intelligent Agent Stage: Entering a phase of true large-scale application. AI can independently complete complex tasks, such as Level 4 autonomous driving or handling daily affairs.

3) Silicon-Based Family Stage: AI not only becomes a family member but even the core organizer of the household, capable of autonomously managing family affairs and preserving user memories.

Li Xiang envisions, "Ultimately, we hope AI will not only serve the family but also preserve our memories and happiness. The silicon-based family is Li Auto's ultimate goal."

When asked how to become a global leader in AI in the current geopolitical environment, Li Xiang stated that he does not believe this goal is out of reach.

He cited the Chinese automotive industry as an example, noting that while the best cars used to come from Germany, today, Chinese companies have become benchmarks in the smart vehicle sector. "Although American AI companies are strong, as long as Chinese companies do not give up and work hard every day, anything is possible."

He emphasized that Li Auto's growth path is phased:

• Short-term Goal: To become the number one in spatial intelligence in China and to enter the top three in the large language model field.

• Medium to Long-term Goal: To achieve deep integration of language intelligence and spatial intelligence, constructing a unified VLA model.

What is the VLA model? On July 28, 2023, Google DeepMind launched the world's first visual language action (VLA) model for controlling robots, and the concept of this model quickly spread to the intelligent driving field.

At the end of October this year, Waymo launched an end-to-end autonomous driving multimodal model EMMA, which has both end-to-end intelligent driving capabilities and integrates multimodal large models.

Source: Youxin Newin, Original Title: "Express | Li Xiang Talks About the Latest Strategy of 'Li Auto' - Transforming into an AI Company, Aiming for Top 3 Domestic Large Models, Future Construction of a Unified VLA Model, Becoming Your Silicon-Based Family"