XPeng Plans $7 Billion Annual R&D Investment, $4.2 Billion for AI
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XPeng Motors plans to boost its annual R&D budget to about $7 billion, allocating over half to artificial intelligence as it seeks to position itself as both a carmaker and a technology leader.
XPeng Motors Chairman and CEO He Xiaopeng has announced ambitious plans for the company’s future research and development investment, stating that annual R&D expenditures are expected to reach ¥50 billion (approximately $7 billion), of which ¥30 billion (approximately $4.2 billion) will be allocated specifically toward AI.
He emphasized that XPeng sees itself not just as an automaker, but also as an AI enterprise. He expressed optimism that XPeng will achieve profitability in the fourth quarter of this year.
He Xiaopeng also commented on the evolution of intelligent systems in vehicles. While much of today’s intelligence in cars is what he called “individual intelligence,” he predicts that after 2026, there will be a shift toward what he terms “collective intelligence,” bringing more rapid and exciting changes in the automotive landscape.
XPeng is already moving ahead on next‐generation models. The company insists it is working now on cars that will go into production in 2027 and 2028.
On the technical front, XPeng’s Turing AI chip successfully taped out in August of last year. The chip features 40 cores, is capable of running large AI models with up to 30 billion parameters, and includes two independent image signal processors (ISPs) that help maintain clarity in low light, rainy conditions, or backlight scenarios.
In July, XPeng launched the G7, which the company markets as the world’s first Level‐3 AI‐powered vehicle. The G7 incorporates three self‐developed Turing chips and starts at a price of ¥195,800 (approximately $27,000).
