Horizon Robotics shifts to technology licensing amid auto industry intelligence race

The Chinese automotive industry is transitioning from a phase of scale expansion to a focus on value creation and technological depth. As the market shifts from electrification to intelligence, competition is increasingly centered on computing power, including onboard chips, intelligent algorithms, and full-domain scheduling capabilities.

Horizon Robotics, a leading provider of intelligent driving solutions, reported significant changes in its business model during the first half of 2026. The company’s revenue from licensing and services—which includes the authorization of underlying technologies like the BPU intelligent computing architecture and AI foundation models—surpassed its revenue from products and solutions for the first time. This segment achieved a gross margin exceeding 90%.

Despite a reported net profit increase driven by fair value changes from a convertible loan to CARIAD, Horizon Robotics’ core operating business remains in a loss position. This loss expanded to 1.67 billion yuan, primarily due to high research and development expenditures. The company maintains a high-growth, high-investment strategy to secure its position in the intelligent driving market, where its Journey 6 series chips have already secured cooperation with over 25 automakers.