Nvidia’s Jensen Huang Declares Autonomous Vehicles Have Arrived
Nvidia CEO Jensen Huang used his keynote at CES 2025 as a launching pad for his company’s latest strides in autonomous-vehicle technology. Huang confidently announced a paradigm shift, proclaiming that self-driving cars are no longer a futuristic concept but a present-day reality. He emphasized Nvidia’s strategic role in fueling this transformation, pointing to key partnerships and technological advancements.
Nvidia’s Orin chips, a crucial component of its autonomous vehicle suite, will power Toyota’s driver-assist features, as announced at the show. Analysts see this as a major win and a sign of Nvidia’s dominance in the burgeoning sector. One expert described the move as a significant “shot in the arm” for an industry that has faced recent setbacks.
Nvidia’s Three-Pronged Approach to Self-Driving Technology
Huang articulated a three-computer framework necessary for true self-driving capabilities:
- A system to train the AI models to understand the world.
- A simulation computer designed to allow these models to practice handling uncommon but critical scenarios.
- An in-car computer for real-time operation.
Nvidia has strategically woven itself into each of these essential elements. This approach distinguishes Nvidia from companies such as Waymo and Tesla that focus on consumer-facing robotaxi services. Nvidia positions itself as a critical technology enabler, providing the underlying components that make autonomous driving possible.
Partnerships and Market Position
Nvidia leverages its advanced driver-assist systems (ADAS) to make cars with features like automatic lane keeping and adaptive cruise control. This strategy places Nvidia as a primary tech supplier to the automotive industry, with key partnerships with major players like Toyota, Uber, and Hyundai.
During a fireside chat with financial analysts, Huang expressed his view that every car company will have to incorporate autonomous technology to stay relevant, stating, “Every single car company will have to be autonomous, or you’re not going to be a car company.”
Despite the success of companies such as Waymo and Tesla, self-driving technology has experienced a period of uncertainty as carmakers reallocated resources towards electric vehicles and reassessed the path to profitability for autonomous systems.
Competition in the Chip Market
The race to dominate the market for automotive chips is intense. Today’s vehicles use numerous chips, though most do not handle the complex tasks associated with self-driving. Nvidia contends with significant rivals, including Qualcomm and Mobileye. Martin French, a managing director at the automotive consultancy Berylls, sees Nvidia as the clear leader as AI converges with self-driving technology.
Toyota’s adoption of Nvidia’s Orin chips and automotive operating system underscores the importance of this partnership. The Orin system, which came out in 2019, offers computing power and AI integration within a car. Luxury EV manufacturers such as Mercedes-Benz and BYD have also adopted Orin.
Market Potential and Financial Projections
While fully self-driving cars are still in development, the market for assisted and autonomous driving is expected to reach $400 billion by 2035, according to McKinsey. Nvidia anticipates a $5 billion run rate for its automotive business in fiscal year 2025, a fivefold increase from its 2023 figures. Nvidia is also collaborating with the trucking startup Aurora Innovation and the automotive supplier Continental to develop self-driving trucks.
Beyond the automotive sector, Nvidia’s technology also supports Tesla’s self-driving capabilities, further cementing its position in the market. Although Tesla’s chips for its Full Self-Driving system are designed in-house, the two companies continue to collaborate.
Several companies are unable to provide chips, as well as the AI training needed for self-driving capabilities; while the company’s automotive business still has more growth to experience, PhillipCapital analysts noted that it was the most relevant revelation from Huang’s CES presentation.
In the first three quarters of 2024, Nvidia’s automotive sector accounted for less than 2% of overall revenue. Further, during an earnings call last February, CFO Colette Kress announced that $1 billion of Nvidia’s data-center revenue (reported separately from its automotive chip business) was attributable to automotive clients.
French confirmed the sentiment by stating, “They are absolutely positioning themselves as the leader for autonomous technologies, period.”
A “Shot in the Arm” for Self-Driving
In recent years, various automakers have scaled back their investments in self-driving projects to focus on electric vehicles. Ford and Volkswagen discontinued funding for Argo AI in 2022, and GM announced the end of its Cruise division’s robotaxi development at the end of 2024.
French emphasized the negative impact of this news, noting that “Nvidia has reversed that and just gave autonomous driving an absolute shot in the arm.”
Investor confidence in legacy automakers’ abilities to develop software has waned, with investors growing impatient with the impact on profits. The endorsement by a tech leader like Jensen Huang provides a critical boost. According to French, “For Jensen — one of the leading people in tech — to get up onstage and tell everyone autonomous driving is here and robotics are just around the corner holds a lot of weight with investors.”
The Future of Autonomous Technology
Huang is known for identifying and conquering emerging markets. French suggests that the autonomous vehicle (AV) market may be ready to be won. With the industry frequently standardizing new technologies to streamline the regulatory process, this approach could produce a period of intense competition.
As AI closes the gap between robotics and self-driving cars, the automotive industry may soon learn what it’s like to be part of Nvidia’s next big market.
