Tesla’s full self-driving (FSD) system has been praised as the most advanced in the industry according to Nvidia CEO Jensen Huang. Huang emphasized that Tesla’s FSD system, which is powered by Nvidia chips, is revolutionary due to its use of an end-to-end generative model. This model allows the system to learn how to drive by watching surround videos and predict the path of the car using generative AI. Huang expressed admiration for the work Tesla is doing in advancing self-driving technology.
Tesla’s latest version of FSD, version 12, is currently in beta mode and has been rolled out to new owners as a 30-day free trial. The FSD subscription currently costs $99 per month or $8,000 upfront. It has already accumulated over 1.3 billion cumulative miles driven since its introduction in March 2021. Despite its advancements, FSD is still considered a Level 2 autonomous system and requires supervision during use. It has faced recalls and government inquiries into its capabilities.
Nvidia, the company behind the chips powering Tesla’s FSD, reported $329 million in automotive revenue for the first quarter. While this is a small portion compared to the $22.6 billion from their data center business, Nvidia’s CFO expects automotive to become their largest enterprise vertical this year. The company sees potential for a multibillion-dollar business in the automotive sector.
The majority of Nvidia’s data center revenue comes from consumer internet customers, with cloud providers like Amazon, Alphabet, and Microsoft accounting for a significant portion. Nvidia predicts that computing power for autonomous vehicles will become a crucial requirement as it expects every car to have some level of autonomous ability eventually. The processing power required to handle the vast amount of video data in autonomous driving is immense.
To meet this demand, Nvidia collaborated with Tesla to expand their FSD training AI cluster, incorporating 35,000 Nvidia Hopper H100 GPUs. Nvidia’s automotive sector clients are not limited to Tesla, as they also include prominent automakers like Mercedes, Jaguar Land Rover, Volvo, and Hyundai, as well as Chinese EV companies BYD and NIO.
The market has shown confidence in Nvidia’s automotive business, with JPMorgan analysts raising their price target for the company based on projected growth rates and the potential for an additional $14 billion of auto revenue over the next few years. This indicates a positive outlook for Nvidia in the automotive industry.
In conclusion, Nvidia’s CEO praises Tesla’s FSD as the most advanced self-driving system in the market. Tesla’s use of an end-to-end generative model sets it apart, with the system learning from surround videos to predict and control the car’s path. Nvidia’s collaboration with Tesla and other automotive clients demonstrates their commitment to providing the necessary computing power for autonomous vehicles. As the demand for self-driving technology continues to grow, Nvidia anticipates significant growth in their automotive business.