NVIDIA Corporation NVDA last week announced that NIO Limited NIO, a Chinese electric vehicle (EV) maker, would use its self-driving solution to offer advanced automated driving capabilities in its new generation EVs.

The partnership will lead to the integration of NVIDIA DRIVE Orin System-on-a-chipprocessors into NIO’s newly-built automotive supercomputer, Adam. According to NVIDIA, NIO Adam supercomputer is one of the most powerful platforms for autonomous vehicles.

The company further announced that NIO’s supercomputer will feature four NVIDIA DRIVE Orin SoC processors, with which Adam would achieve more than 1,000 TOPS (Tera Operations Per Second) performance.

The architecture will likely be first deployed in NIO’s ET7model, which is anticipated to start shipping across China in 2022.

NVIDIA Corporation Price and Consensus

NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote

NVIDIA’s Auto Partnerships Hold the Key

The partnership with NIO further strengthens NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.

NVIDIA is working with more than 320 automakers, tier-one suppliers, automotive research institutions, HD mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles.

Earlier, last June, NVIDIA announced its collaboration with Daimler-owned Mercedes-Benz to develop an in-vehicle computing system and AI-computing infrastructure. In 2019, NVIDIA had collaborated with Volvo to develop a scalable AI-based autonomous driving system using the Drive AGX Pegasus computing board of the former.

Uber Technologies’ UBER self-driving unit Advanced Technologies Group (ATG) has been using NVIDIA’s AI computing technology in its fleet of self-driving vehicles for more than three years now.

Notably, last month, Uber agreed to sell the ATG unit to its start-up competitor Aurora Innovation for a total consideration of approximately $4 billion. Additionally, Aurora is already using NVIDIA DRIVE Xavier processor for its Level 4 and 5 self-driving hardware platforms.

Meanwhile, Volkswagen has been working on creating new cockpit experiences and boosting safety for its future vehicles by using NVIDIA’s DRIVE IX AI platform.

Further, the company’s partnership with Baidu BIDU and German auto supplier, ZF Friedrichshafen, to build a “production-ready AI autonomous vehicle platform” specially designed for the Chinese market is a positive.

Apart from these, Toyota has extended its partnership with NVIDIA to ramp up its autonomous vehicle development program.

Lucrative Autonomous Vehicle Market Growth Prospect

Markedly, the autonomous vehicles industry flaunts one of the most lucrative prospects today. A Market Data Forecast report suggests that the self-driving cars market is expected to hit $56.21 billion in 2020 and reach $220.44 billion by 2025, at a CAGR of 36.5%.

NVIDIA currently is on a firm footing in the autonomous vehicle market. Remarkably, the company’s focus on incorporating AI into the cockpit for infotainment systems is helping it bolster its autonomous driving revenues. This Zacks Rank #2 (Buy) company expects its automotive TAM to be $30 billion by 2025, which comprises $25 billion for driving, $3 billion for training/development of deep neural networks, and $2 billion for validation and testing.

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