Mercedes-Benz and Nvidia Join Forces | Financial Buzz

Mercedes-Benz and Nvidia Join Forces

Mercedes-Benz revealed Tuesday that it has partnered with Nvidia (NASDAQ: NVDA) to create the newest in-vehicle computing system. The new technology is set to aid with remote or over-the-air updates as well as automated driving features. 

Both companies have assured the collaboration will result in “the most sophisticated and advanced computing architecture ever deployed in an automobile.”

A vehicle’s communication system relies on the electrical structure, enabling the vehicle to input and output information to outside origins like remote upgrades or service alerts. Nvidia’s new computing systems are expected to be ready and in vehicles by 2024, according to the companies. Nvidia’s “Drive” platform will be used to upgrade all drivers-assist systems. 

“The entire product is going to be designed differently,” Jensen Huang, founder and CEO of Nvidia, said in a podcast Tuesday.

According to the companies, clients will have the power to buy and add features, software applications and subscription services all via over-the-air software updates through their car. 

“All kinds of applications will be shared with customers,” Nvidia Senior Director of Automotive, Danny Shapiro said in a briefing previous to today’s announcement. “Even things that haven’t been invented yet — we’ll be building the headroom in a true ‘software-defined’ nature — will be able to be a part of a part of this vehicle experience.”

The upgrades are a potential source of income for Mercedes-Benz and will be beneficial in case of any safety recalls or necessary improvements. 

Neither company detailed the financial specifics regarding the deal, however, Nvidia shares reached a 52-week high at USD385.70.