SEPTEMBERASIA BUSINESS OUTLOOK8NEWSROOMNVIDIA UNVEILS JETSON AGX THOR ROBOTICS CHIP AT $3,499Huawei has initiated a major restructuring of its cloud computing division to sharpen its focus on artificial intelligence, according to company sources and Chinese media reports.The reorganization, announced internally by Zhang Pingan, CEO of Huawei Cloud, involves the merger of several departments and the reallocation of resources toward AI-related businesses, including AI model development, data center solutions, and cloud services. The restructuring will reorganize operations into six core areas--computing, storage, database, and cybersecurity, among others. While the exact number of affected employees is unclear, some staff may be offered internal transfers.This strategic pivot follows reported losses in Huawei's cloud unit last year and is aimed at achieving profitability. Despite Huawei's strong financial position and consistent investment of 10­15 percent of its annual revenue in R&D, the cloud business has proven difficult to sustain profitably due to high infrastructure costs and the need for scale.Industry experts suggest that Huawei's decision reflects a broader challenge across global cloud providers, where profitability is elusive without massive economies of scale. By shifting focus to higher-margin services and AI-driven innovation, Huawei is positioning itself for growth in an area less vulnerable to US restrictions.Huawei's restructuring also builds on its strength in telecommunications infrastructure and patents, especially in 5G, while channeling resources into AI opportunities where it can maintain a competitive edge. The move underscores how global tech companies are realigning strategies amid international trade and regulatory pressures. Nvidia has announced the launch of its latest robotics chip module, the Jetson AGX Thor, now available as a developer kit priced at US$3,499, with bulk pricing of US$2,999 per module for orders above 1,000 units.Shipping begins next month. The Jetson AGX Thor is powered by Nvidia's Blackwell GPU architecture, delivering 7.5x the performance of its predecessor and equipped with 128GB of memory, enabling robots to run large AI models efficiently. The chip is targeted at companies building next-generation robotics solutions, with early adopters including Agility Robotics, Amazon, Meta, and Boston Dynamics.Nvidia highlighted that while robotics currently contributes just 1 percent of its total revenue, the combined automotive and robotics division grew 72 percent year-on-year, reaching $567 million in quarterly sales as of May. The company has now grouped these two businesses into a single unit, signaling a strategic push into applied AI industries.The Jetson AGX Thor launch reflects Nvidia's proven strategy of adapting successful chip architectures for new markets, similar to how the company's NV20 GPU in 2001 evolved from gaming into scientific computing and AI. By leveraging its Blackwell GPU technology, Nvidia aims to replicate its dominance in AI--where it controls 85­90 percent market share--within robotics, a sector poised for growth as AI-driven automation gains traction.The real challenge lies in building a robust developer ecosystem around robotics, mirroring the success it achieved in AI computing. HUAWEI RESTRUCTURES CLOUD UNIT TO FOCUS ON AI PROFITABILITYKey Highlights· Huawei restructures cloud unit to prioritize AI services· Cloud business reorganized into six key areas· Move targets profitability after reported 2024 lossesKey Highlights· Nvidia launches Jetson AGX Thor robotics chip with 7.5x faster performance· Priced at $3,499, bulk orders cost $2,999 per module· Robotics revenue grew 72 percent YoY, now grouped with automotive division
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