Nvidia Unveils Self-Driving Car Tech as AI Expansion Accelerates

Nvidia has unveiled a new technology platform for self-driving cars as it pushes to embed artificial intelligence into more physical products.

The announcement came at the annual Consumer Electronics Show (CES) in Las Vegas. Speaking at the event, Nvidia chief executive Jensen Huang said the system, named Alpamayo, would bring advanced reasoning capabilities to autonomous vehicles.

Bringing “Reasoning” to Autonomous Driving

According to Huang, Alpamayo allows vehicles to analyse rare scenarios, navigate complex environments and explain their driving decisions in real time. As a result, cars can behave more naturally and safely on the road.

Moreover, Huang confirmed that Nvidia is working with Mercedes-Benz to develop a driverless vehicle powered by the new platform. The car is expected to launch in the United States in the coming months, before expanding to Europe and Asia.

From Software AI to Physical AI

Until now, Nvidia’s chips have mainly powered AI software, including systems similar to ChatGPT. However, the company is now shifting its focus toward physical products such as vehicles and robots.

Huang described the transition as a major milestone. “The ChatGPT moment for physical AI is almost here,” he told the audience, adding that the project has taught Nvidia how to support partners building robotic systems at scale.

Technology analyst Paolo Pescatore of PP Foresight said Alpamayo marks a strategic shift. According to him, Nvidia is evolving from a compute provider into a platform leader for physical AI ecosystems.

Open-Source Model and Real-World Demo

Notably, Alpamayo is open-source. Nvidia has released the underlying code on Hugging Face, allowing researchers to access and retrain the model freely.

During the presentation, Nvidia showed a video of an AI-powered Mercedes-Benz driving through San Francisco. In the footage, a passenger sat behind the wheel with their hands off, while the system explained its actions as it drove.

“It drives naturally because it learned from human drivers,” Huang said. “At the same time, it reasons through every situation.”

Competition and Market Impact

The announcement places Nvidia in closer competition with companies such as Tesla, which offers its own driver-assistance technology. Tesla CEO Elon Musk reacted online, noting that achieving near-perfect autonomy remains difficult due to rare edge cases.

Like Tesla, Nvidia also plans to launch a robotaxi service next year. However, the company has not disclosed its partner or location.

New Chips and Market Position

Following Huang’s presentation, Nvidia shares edged higher in after-hours trading. The company also revealed that its next-generation Rubin AI chips are already in production and are set for release later this year.

These chips will deliver higher performance while using less energy. Consequently, they could significantly reduce the cost of AI development.

Nvidia remains the world’s most valuable publicly traded company, with a market valuation exceeding $4.5 trillion. Although investor concerns about AI demand persist, the company continues to position itself at the centre of the next phase of AI-driven innovation.