Nvidia CEO praises Tesla’s lead in self-driving technology, driving demand for chips

Nvidia CEO Jensen Huang has praised Tesla’s full self-driving (FSD) system as the most advanced in the market, highlighting the revolutionary technology behind it. In an exclusive interview with Yahoo Finance, Huang commended Tesla for its end-to-end generative model in version 12 of FSD, which utilizes Nvidia’s chips to power the system.

Tesla’s FSD, currently in beta mode, has garnered attention for its innovative approach to autonomous driving. The system, which learns from surround videos to predict driving paths and steer the car, has accumulated over 1.3 billion cumulative miles since its launch in March 2021. Despite its advancements, FSD remains a Level 2 autonomous system, requiring supervised use and facing scrutiny over its capabilities.

Nvidia’s automotive revenue saw a significant increase in the first quarter, with CFO Colette Kress projecting it to become the largest enterprise vertical within the Data Center segment. The company’s collaboration with Tesla extends beyond FSD, with other automotive clients including Mercedes, Jaguar Land Rover, and Hyundai.

Wall Street analysts are optimistic about Nvidia’s automotive business, with JPMorgan raising the chipmaker’s price target and forecasting substantial growth in the auto revenue pipeline over the next few years. As the demand for autonomous driving technology continues to rise, Nvidia’s partnership with Tesla and other industry players positions it as a key player in the evolving automotive landscape.