Volvo to Use Nvidia Chips for Autonomous Driving Functions in Cars Starting Next Year

Nvidia forecasts it can generate $8 billion (roughly Rs. 60,220 crores) in revenue over the next six years from sales of its Nvidia DRIVE automotive systems.

Updated: 13 April 2021 10:46 IST

Volvo to Use Nvidia Chips for Autonomous Driving Functions in Cars Starting Next Year

Nvidia's pipeline of automotive orders has grown into the many billions of dollars

Highlights

Tesla has taken the lead in software-driven features
Volvo Cars said it will use Nvidia's new Drive Orin system
Nvidia said it is developing a new on-board computer system on a chip

Volvo Cars said Monday it will use a new generation of high-powered chips from Nvidia to enable more autonomous driving functions in future vehicles, starting next year.

Volvo is among a crowd of new and established automakers putting digital processing power ahead of horsepower as they try to catch up with Tesla.

Nvidia, a maker of high-powered chips for gaming and data processing centres, has benefited from the computing power race among automakers. Company Chief Executive Jensen Huang told investors Monday Nvidia forecasts it can generate $8 billion (roughly Rs. 60,220 crores) in revenue over the next six years from sales of its Nvidia DRIVE automotive systems.

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Tesla, the world's most valuable automaker, has taken the lead in software-driven features and functional capability in part by equipping its cars and SUVs with powerful, and expensive, on-board computers that can manage complex tasks such as automated driving, and be upgraded over the air.

For Nvidia, the Volvo agreement, a similar deal with electric vehicle startup Faraday Future, and other agreements expected in the coming weeks mark a reboot of growth for the gaming and data centre processor company's automotive business.

"Nvidia's pipeline of automotive orders has grown into the many billions of dollars," Danny Shapiro, Nvidia's senior director of automotive, told reporters ahead of the company's GTC21 conference Monday. Revenue for the company's automotive business fell 23 percent in 2020.

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Volvo Cars, owned by China's Geely Holding, said it will use Nvidia's new Drive Orin system, with far more processing power than current Nvidia chips used in Volvo vehicles, starting with a new generation XC90 sport utility due to launch next year.

In a nod to Tesla, Volvo said vehicles equipped with the new Nvidia Orin systems will be "hardware-ready" for autonomous driving features such as a "Highway Pilot" feature that will be activated via a software download "when it is verified to be safe for individual geographic locations and conditions."

Faraday Future said it will offer autonomous driving, parking and a "summon" feature in its FF 91 model due out in 2022. Tesla already offers a "summon" system that allows a car to navigate through a parking lot at the owner's remote command.

Rival automakers including Daimler AG and several Chinese electric vehicle startups are taking a similar approach.

Nvidia also said Monday it is developing a new on-board computer system on a chip called Atlan that will give a car the computing power currently found in a data center. This chip should be ready for 2025 models, Nvidia said.

© Thomson Reuters 2021

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