The Pentagon vs. Hesai: A Chinese Lidar Maker in the US Self-Driving Landscape
The Pentagon has blacklisted Hesai, a Chinese lidar maker, as a military company. Despite this classification, Hesai’s lidar technology continues to power various US robotaxis, trucks, and even New York’s JFK airport. Nvidia, a significant partner, integrates Hesai’s sensors into its self-driving platform.
A Global Leader in Automotive Lidar
Hesai holds approximately one-third of the global automotive lidar market. Its products are found in Amazon’s Zoox robotaxis, trucking companies Waabi and Kodiak, delivery service Nuro, and more recently, integrated into Nvidia’s self-driving technology through an expanded deal at CES 2026.
Cost Reduction vs. Subsidies
Hesai boasts a significant price drop for its lidar units, from over $10,000 to under $200, but critics argue that this achievement relies heavily on Chinese state subsidies. Hesai denies these claims.
Security Concerns
Security researchers raise alarms about the potential for attacks on Hesai’s sensors. A Duke University lab demonstrated how malware can manipulate lidars to detect false persons or conceal real ones. In 2024, a Hesai firmware update experienced a leap-year bug, causing all sensors to fail simultaneously.
Hesai’s CEO Defends
Hesai’s CEO, David Li, dismisses these security concerns, stating that the sensors store no data and cannot "phone home." He also denies any Chinese government involvement in the company and quickly fixed the leap-year bug within a day.
A Recurring Theme
The Hesai situation echoes similar cases with Huawei, DJI, and TP-Link, all blacklisted by the Pentagon before their removal from US markets. Now, US lawmakers aim to phase out Chinese lidar and prevent Chinese cars from entering American roads. Europe faces a similar dilemma, as its carmakers heavily rely on inexpensive Chinese sensors in the global race for autonomous driving.
By
Darius Popa
Technology enthusiast and intern at The Next Web, contributing to research-backed content and investigating new technologies and global events.