Chipmaker Nvidia (NVDA) is partnering with automotive giant General Motors (GM) to jointly develop next-generation vehicles that incorporate artificial intelligence (AI) and driver-assistance systems.
The deal between Nvidia and GM also reportedly includes jointly developing new automotive factories.
The two leading American companies said the new initiatives will include building custom artificial intelligence systems using Nvidia’s compute platforms such as “Omniverse with Cosmos” in order to optimize GM’s manufacturing facilities and its factory robots.
The Detroit automaker also said that it plans to employ “Nvidia Drive AGX” for its future advanced driver-assistance systems and in-cabin experiences. The value of the partnership was not disclosed. But for Nvidia, the deal gives the company a new sales channel for its microchips and processors that can be employed in automobiles. For GM, the partnership helps it to diversify its core vehicle business, which is increasingly involving data centers and graphics processing units (GPUs).
New Era
“The era of physical AI is here, and together with GM, we’re transforming transportation, from vehicles to the factories where they’re made,” said Nvidia CEO Jensen Huang in a news release. “We are thrilled to partner with GM to build AI systems tailored to their vision, craft and know-how.”
GM already uses Nvidia GPUs for training AI models across various areas of its business, including in vehicle simulations. The new business expands to in-vehicle hardware, automotive plant design, and operations, the companies said. The partnership was announced at Nvidia’s annual GTC developer conference that is taking place in California this week.
It’s unclear how many Nvidia chips and processors GM will need. But given the amount of robotics, sensors, and other systems found in modern assembly plants, it will likely be a lot. NVDA stock is down 13% so far in 2025.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 39 Buy and three Hold recommendations issued in the last three months. The average NVDA price target of $177.23 implies 51.87% upside from current levels.
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