Nvidia CEO Jensen Huang recently praised Tesla for being ahead in autonomous vehicles, specifically highlighting Tesla’s Full Self-Driving (FSD) system as the most advanced in the industry. Huang emphasized the use of Nvidia chips in powering Tesla’s FSD system, with Tesla’s latest version 12 being a significant step forward. This end-to-end generative model incorporates immersive video learning to predict driving paths and enhance understanding, setting a new standard for autonomous technology.
Tesla’s FSD version 12, currently in beta mode, offers a free 30-day trial for new owners, with a subscription cost of $99 per month or a one-time payment of $8,000. As of April, FSD has accumulated over 1.3 billion miles since its launch in March 2021. Despite its advancements, FSD remains a Level 2 autonomous system, requiring supervision and undergoing scrutiny regarding its capabilities through recalls and government consultations.
Nvidia, primarily known for its data center business, reported $329 million in automotive revenue in the first quarter, up 17% sequentially and 11% year over year. CFO Colette Kress anticipates automotive to become the largest vertical within the data center segment, a potential multimillion-dollar opportunity for the company. A significant portion of Nvidia’s data center revenue comes from consumer Internet customers, particularly cloud providers like Amazon, Alphabet, and Microsoft.
Huang envisions a future where all cars possess autonomous capabilities, attributing the necessity of immense computing power to process vast amounts of data, akin to large language models. Nvidia played a crucial role in bolstering Tesla’s FSD training AI by providing 35,000 Nvidia Hopper H100 GPUs. Apart from Tesla, Nvidia serves other automotive clients such as Mercedes, Jaguar, Land Rover, Volvo, Hyundai, BYD, and NIO, indicating a strong presence in the industry.
Analysts from JPMorgan raised Nvidia’s price target to $1,150, projecting robust growth in the data center business and significant revenue potential from the automotive sector over the next few years. The optimistic outlook on Nvidia’s automotive business reflects Wall Street’s confidence in the company’s future prospects.
In conclusion, Nvidia’s partnership with Tesla in developing advanced autonomous technology underscores the company’s commitment to innovation in the automotive sector. With a strong foothold in the data center business and a growing presence in automotive applications, Nvidia is poised for substantial growth and success in the coming years.
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https://www.autoblog.com/2024/05/27/nvidia-ceo-says-tesla-far-ahead-in-self-driving-tech/