Nvidia Boosts Self-Driving AI Business With Volvo Trucks Deal
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Sweden’s AB Volvo is joining forces with Nvidia to develop artificial intelligence used in self-driving trucks, in a boost for the U.S. chipmaker that was ditched by Tesla last year. The agreement announced on Tuesday by Nvidia and Volvo, the world’s second-biggest truckmaker after Daimler, is a long-term partnership spanning several years. Work will begin immediately in Gothenburg, Sweden and Santa Clara, California. Volvo, which demonstrated its first autonomous truck last year, said the partnership would develop a flexible, scalable self-driving system, which is planned to be used first in pilot schemes before commercial deployment.
“The resulting system is designed to safely handle fully autonomous driving on public roads and highways,” Volvo said in a statement. Nvidia, known for its powerful gaming graphics chips, has been aggressively expanding into the automotive sphere, where trucks – with their regular routes that are easier to automate than cars navigating traffic – may lead the way in self-driving.
Potential demand is strong in the United States in particular, where a shortage of truck drivers has been pushing up freight costs. Together with Intel, Nvidia dominates the fast-growing AI chip market.Nvidia, which has previously announced technology partnerships with automakers including Volkswagen, Mercedez-Benz and Toyota, said it was thrilled to team up with Volvo.
“The latest breakthroughs in AI and robotics bring a new level of intelligence and automation to address the transportation challenges we face,” said Nvidia Chief Executive Jensen Huang.
Volvo said last week its self-driving truck, “Vera”, would begin transporting goods from a logistics center to a port terminal in Gothenburg in collaboration with logistics firm DFDS, in a first step toward operations on public roads here.Nvidia’s so-called Drive Constellation chips often power the machine learning used to refine self-driving car software algorithms inside data centers, and the company has also been working to build its Drive chips into cars. Automotive chips accounted for $641 million of Nvidia’s $11.7 billion in revenue in its most recent fiscal year.
Questions & Answers
Q.What is the purpose of the partnership between AB Volvo and Nvidia?
What is the purpose of the partnership between AB Volvo and Nvidia?
The agreement aims to develop artificial intelligence for self-driving trucks. This long-term collaboration will create a flexible, scalable system for autonomous driving, initially for pilot schemes before wider commercial use on public roads and highways.
Q.Where will the development work for this self-driving system take place?
Where will the development work for this self-driving system take place?
Work on the self-driving system will begin immediately in two primary locations. These are Gothenburg, Sweden, which is where AB Volvo is based, and Santa Clara, California, a key location for Nvidia.
Q.Why might self-driving trucks be a focus area for autonomous vehicle development?
Why might self-driving trucks be a focus area for autonomous vehicle development?
Self-driving trucks are considered a promising area because their regular routes are generally easier to automate compared to cars navigating complex traffic. Strong potential demand exists, particularly in the United States, where a shortage of drivers pushes up freight costs.
Q.How significant is the automotive sector to Nvidia's overall revenue?
How significant is the automotive sector to Nvidia's overall revenue?
While aggressively expanding into automotive, the sector currently represents a relatively small portion of Nvidia's total earnings. Automotive chips accounted for $641 million of the company's $11.7 billion in revenue during its most recent fiscal year.
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