NIO is betting that in-house chip development will sharpen its technological edge and improve profitability, Chief Executive William Li said on Friday, as the Chinese premium EV brand pushes to reduce reliance on suppliers such as Nvidia. Li said NIO developed its own silicon so its chips could better match the company's algorithms and sensor layout, particularly for AI functions such as advanced driver-assistance. He told Reuters in an interview that Nvidia's automotive chips have "very high gross margin," and that by making its own chips NIO could eventually lift its overall profit, despite higher upfront research-and-development costs.