Everyone's talking about AI - markets have been volatile as […]
Nvidia announced on January 5, 2026, that it is collaborating with robotaxi operators to launch fleets powered by its AI chips and Drive AV software stack by 2027.
The goal is to deploy "Level 4" robotaxis, which can operate without human intervention in designated areas. This marks a significant step for the company as it seeks to expand its role in the autonomous vehicle market.
In the quarter ending in October 2025, Nvidia's automotive and robotics chips generated $592 million in sales. This figure represents only about 1% of the company's total revenue, indicating that while the automotive sector is still a small part of Nvidia's business, it holds potential for growth.
The company is betting on the increasing demand for self-driving technology to boost its revenues in the coming years.
Nvidia has partnered with Uber to explore robotaxi services, as announced in October 2025. This partnership aligns with Nvidia's strategy to enhance its presence in the autonomous vehicle space.
Additionally, the company is developing software that will be used in Mercedes-Benz models set to launch in late 2026, further solidifying its position in the automotive market.
Jensen Huang, Nvidia's CEO, has highlighted that robotics, which includes self-driving cars, is the company's second most important growth category after artificial intelligence.
Huang envisions a future where a billion cars on the road will be autonomous, either as robotaxis or owned vehicles. This ambitious vision showcases Nvidia's commitment to leading the charge in self-driving technology.
Nvidia offers its Drive AGX Thor automotive computer, which costs approximately $3,500 per chip. This technology is designed to help car manufacturers reduce research and development costs and accelerate the market readiness of self-driving features.
The company collaborates with automakers to customize its technology to meet specific needs, ensuring a smoother integration into their vehicle offerings.
Nvidia's plans for the future include enhancing its self-driving algorithms using recent advances in generative AI. The company aims for point-to-point self-driving features in consumer cars by 2028. As
Nvidia continues to innovate, it hopes to create a driving experience where users can simply communicate with their cars, making the technology more accessible and user-friendly.
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