Nvidia Accelerates Automotive Ambitions with Robotaxi Service Plans
Nvidia is aggressively expanding its footprint in the automotive sector, unveiling plans to pilot a robotaxi service in partnership with an undisclosed company as early as 2027. This move underscores the chip giant’s strategic push to become a dominant force in the burgeoning autonomous vehicle market. The planned service will feature vehicles capable of Level 4 autonomy, signifying their ability to operate without human intervention within defined geographic areas, according to company officials. While specific operational locations and the identity of the partner remain confidential, Nvidia aims to gradually introduce the service with limited availability to refine its footing in this complex ecosystem.
This latest development builds upon Nvidia’s existing automotive technology offerings under its Drive brand, which has been available since 2015. However, this segment currently represents a modest portion of Nvidia’s overall business. Sales from automotive and robotics chips amounted to $592 million in the quarter ending October, accounting for a mere 1% of the company’s total revenue. Nvidia’s previous collaborations include a robotaxi partnership announced with Uber in October.
The company also revealed in December the development of sophisticated software designed to power self-driving cars. Mercedes-Benz models slated for release in late 2026 are expected to integrate Nvidia’s technology, enabling advanced navigation capabilities in urban environments such as San Francisco. This strategic expansion into autonomous driving positions it as a critical growth vector for Nvidia beyond its core AI infrastructure business. CEO Jensen Huang has identified robotics, including self-driving cars, as the company’s second most significant growth category, trailing only artificial intelligence.
“We envision a future where a billion cars on the road are autonomous,” Huang stated at a recent event. “This could manifest as robotaxis available for rent, or as personally owned autonomous vehicles.”
Beyond the chips embedded within autonomous vehicles, Nvidia provides automotive manufacturers with access to its high-performance AI chips and simulation software. This allows these companies to train their self-driving models and accelerate technological development. Nvidia’s Drive AGX Thor automotive computer, priced at approximately $3,500 per chip, is designed to reduce research and development expenditures and expedite the market entry of autonomous features. The company collaborates closely with automakers to customize its technology, fine-tuning parameters like acceleration to suit specific vehicle requirements.
“Some clients express a need for assistance in training and optimizing their software on our chips, while preferring to manage the simulation aspects independently,” explained Ali Kani, general manager of Nvidia’s automotive platform. This approach allows car manufacturers like Mercedes-Benz to integrate Nvidia’s technology, brand it as a premium in-car experience, and offer it as an integrated or optional feature with new vehicle sales.
The robotaxi segment has gained significant traction in the past year, notably spearheaded by Alphabet’s Waymo, which operates a commercial driverless taxi service across five U.S. markets, including San Francisco. Nvidia’s announcement signals its intention to target not only personal autonomous vehicles but also the lucrative market of self-driving fleet services.
**Experiencing Nvidia’s Autonomous Drive Technology**
Nvidia provided a demonstration of its autonomous driving capabilities in December, offering a ride in a 2026 Mercedes-Benz CLA sedan through San Francisco. While a safety driver from Mercedes-Benz was present, the vehicle reportedly operated autonomously for 90% of the journey. The experience was noted as smooth and confidence-inspiring, even amidst challenging city conditions like steep inclines, frequent traffic signals, and delivery vehicles obstructing lanes.
A critical test occurred when the vehicle encountered a complex scenario involving multiple buses, a Waymo vehicle, street parking, and active unloading operations. The safety driver intervened to navigate the situation, requiring the car to reverse to clear the congestion. Nvidia characterized this demonstration as “Level 2 Plus Plus,” a tier offering advanced autonomous features comparable to Tesla’s Full Self-Driving capabilities. While Nvidia-powered vehicles will exhibit increasingly sophisticated self-driving functions, the responsibility for ensuring passenger safety will remain with the human driver, who must maintain constant vigilance.
The company anticipates that its systems will eventually achieve “park-to-park” functionality, enabling autonomous navigation between parking spaces. However, this feature will not be initially available in the Mercedes-Benz CLA models. “The vehicle will be equipped to handle any parking situation you find daunting,” stated Ola Källenius, CEO of Mercedes-Benz Group, at a recent Nvidia event.
The Mercedes-Benz model showcased, launched in Europe last year, is set for its U.S. debut this year. Initially equipped with lane-keeping and driver assistance features, these vehicles will receive over-the-air software updates introducing lane-changing capabilities, hands-free highway driving, urban driving, and the aforementioned park-to-park functionality within the current year.
Nvidia’s safety architecture for its Drive-powered vehicles incorporates two AI systems. The primary system employs an “end-to-end” vision-language model that interprets sensor data to plot a driving path. Complementing this is a secondary, safety-focused system that relies on predefined rules, such as adhering to stop signs, to intervene when the primary AI encounters uncertainty.
Looking ahead, Nvidia anticipates that recent advancements in generative AI, powered by its graphics processing units, will significantly enhance the capabilities of self-driving algorithms. The company is targeting 2028 for the introduction of full point-to-point self-driving features in consumer vehicles. Ultimately, Nvidia aims to create an in-car experience where the vehicle itself feels like an intuitive, conversational assistant.
“With the integration of transformers and generative AI, our capabilities are expanding exponentially,” commented Xinzhou Wu, Nvidia’s vice president of automotive.
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