How The Nvidia-GM Partnership Could Challenge Tesla, Boost Uber

Nvidia Corp NVDA just landed another heavyweight deal—this time with General Motors Co GM—and it's one that could shake up the autonomous driving race.

While Tesla Inc TSLA has long dominated with its Full Self-Driving (FSD) tech, GM is now doubling down on Nvidia's AI muscle to build its next-gen self-driving fleet.

Related: Tesla Takes Another Hit With Nvidia, GM Self-Driving Partnership

And Uber Technologies Inc UBER is primed to benefit from the ride-hailing revolution.

GM + Nvidia: A Self-Driving Power Play

GM's new partnership with Nvidia will see the automaker using its AI chips and software to develop autonomous vehicle technology, both for its cars and factory operations. With traditional automakers struggling to commercialize self-driving tech, GM's move signals a major bet on AI-driven automation.

While Tesla keeps its proprietary FSD tech in-house, GM is leaning on Nvidia's AI prowess, joining a lineup of other automakers such as Toyota Motor Corp TM, Hyundai and Mercedes-Benz, which have turned to the chip giant for their autonomous ambitions.

GM previously used Nvidia's chips for its Cruise robotaxis, but after pulling the plug on that business, it's now pivoting to driver-assistance tech for personal vehicles.

Uber Rides Into The Future

Uber is also in on the action. Last year, the ride-hailing giant announced a partnership with GM's Cruise to deploy autonomous vehicles on its platform. The vision? A world where Uber riders might soon be hopping into driverless Chevys powered by Nvidia's AI.

"As the largest mobility and delivery platform, we believe Uber can play an important role in helping to safely and reliably introduce autonomous technology to consumers and cities around the world," said Uber CEO Dara Khosrowshahi.

With GM forecasting that its Super Cruise driver-assistance tech could bring in $2 billion in annual revenue within five years, the battle for self-driving dominance is heating up.

Tesla may have a head start, but with Nvidia's AI driving the competition, the road ahead is anything but predictable.

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