Nvidia to Launch Robotaxi Trials in 2027 in Self-Driving Expansion

• Nvidia's automotive and robotics chip sales totaled only $592 million in Q4 2024, representing just 1% of total revenue, indicating significant room for growth in this sector
• The company's Drive automotive computer costs approximately $3,500 per chip and will power Mercedes-Benz models launching in late 2026 with urban navigation capabilities
• Nvidia is using dual AI systems for safety: an 'end-to-end' vision-language model for primary driving and a rule-based safety stack that takes over when the AI is uncertain

Nvidia to Launch Robotaxi Trials in 2027 in Self-Driving Expansion

Key Developments:

Nvidia announced plans to test a robotaxi service by 2027 with an unnamed partner, marking a significant push into autonomous vehicle operations beyond its existing chip business. The service will feature Level 4 autonomous driving capability, allowing vehicles to operate without human intervention in designated geographic areas.

Financial Context:

Automotive and robotics chips currently represent a minimal portion of Nvidia's business, generating only $592 million in sales for the quarter ending October—approximately 1% of total revenue. However, CEO Jensen Huang has identified robotics and self-driving cars as the company's second most important growth category after AI infrastructure.

Technology and Partnerships:

Nvidia's Drive automotive computer, priced at approximately $3,500 per chip, aims to reduce R&D costs for automakers. Mercedes-Benz will integrate Nvidia's technology into models launching in late 2026, with capability to navigate complex urban environments like San Francisco. The system employs dual AI systems: an "end-to-end" vision-language model for primary driving and a rules-based safety stack for backup.

Product Roadmap:

Mercedes-Benz vehicles will receive progressive autonomous features through 2026-2028, including hands-free highway driving, urban navigation, and eventually "park-to-park" functionality. Nvidia targets 2028 for point-to-point self-driving features in consumer vehicles.

Market Implications:

The announcement positions Nvidia to compete in both consumer autonomous vehicles and robotaxi fleet operations, a market where Waymo currently leads with commercial services in five U.S. cities. Huang envisions "a billion cars on the road" eventually becoming autonomous, representing substantial long-term growth potential beyond Nvidia's core AI infrastructure business.