Nvidia Highlights AI Chips Powering PUBG, Robotics 'ChatGPT Moment,' Automotive Expansion And More At CES Event

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Zinger Key Points
  • Nvidia unveils Project DIGITS AI supercomputer and RTX 5090 chips at CES 2025.
  • Nvidia partners with Toyota on driver-assistance tech, boosting its automotive business.

Nvidia Corp NVDA maintains an upward stock trajectory this week after a power-packed start with the Consumer Electronics Show (CES), Microsoft Corp MSFT eying an $80 billion investment in developing AI data centers for 2025, and Foxconn's robust quarterly results.

Chief Jensen Huang announced the company's $3,000 desktop-sized personal AI supercomputer, Project DIGITS, powered by the GB10 Grace Blackwell super chip, during his CES 2025 keynote.

Huang also presented the new RTX 5000 GPU series, laptops featuring the RTX 50-series, and the Grace Blackwell NVLink 72 system.

Also Read: AMD and Nvidia Overtake Intel in Key Markets, Challenging Its Leadership

Nvidia told CNBC that the high-end RTX 5090 chips will be able to run AI models and do computer graphics, including helping game makers integrate generative AI into their characters in games like PUBG: Battlegrounds.

The new processors will also be able to run large language models and image generation models from companies including Meta, Mistral, and Stability AI.

He also announced that Toyota Motor Corp TM will use Nvidia Drive AGX Orin to enhance its automated driving capabilities.

Nvidia forged a deal to provide driver-assistance chips and software for Toyota vehicles.

Nvidia expects its automotive vertical business to grow to ~$5 billion in fiscal 2026 from ~$4 billion in fiscal 2025.

Some of Nvidia Drive AGX clients include BYD Co BYDDF BYDDY, Li Auto Inc LI, Lucid Group Inc LCID, Rivian Automotive, Inc RIVN, Xiaomi Corp XIACF XIACY, ZEEKR Intelligent Technology Holding ZK.

At the event, Nvidia also flagged its alliance with Meta Platforms Inc META on innovating open-source Llama models, which Daniel Newman of The Futurum Group expects to outperform OpenAI potentially.

Huang showcased physical AI tools to train robots, leveraging simulated environments that closely mimic the real world. These tools enabled higher automation in warehouses and factories and boosted a humanoid-robot market that the company said could be worth $38 billion in decades, the Wall Street Journal reports.

Huang told the WSJ that the ChatGPT moment for general robotics is just around the corner.

Nvidia product director Justin Walker told CNBC that despite being an AI company and a gaming company, the gaming side still benefits tremendously from being an AI company.

Nvidia also announced its Cosmos foundation models, which generate photorealistic video to train robots and self-driving cars at a more affordable cost.

Cosmos will be available on an "open license," similar to Meta's Llama 3 language models. Huang expects Cosmos to do the same for robotics and industrial AI as Llama 3 has done for enterprise AI, Reuters reports.

Bank of America's Vivek Arya told Reuters that he will await possible upside from Nvidia's robotics by drawing [parallels with the metaverse and autonomous cars.

Price Action: NVDA stock is up 2.20% at $152.87 premarket at the last check Tuesday.

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