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There was news out yesterday about one of our recommended holdings. Nvidia is teaming up with Mercedes-Benz to launch "software-defined vehicles", starting in 2024, based on Nvidia's end-to-end compute technology.
Huh? According to statements from the two companies, from 2024 onwards, every new Mercedes-Benz motor vehicle will include a software-defined computing architecture that includes an Nvidia computer, system software, and applications for consumers. Nvidia's vision is for traditional vehicles to become high-performance update-able computing devices.
Ok, you probably noticed that Tesla (another Vestact recommended company) also describes itself as a "full stack" company developing its own vehicle, hardware, and software offerings.
Anyway, these Benzes will feature Nvidia's DRIVE AGX Orin platform with multiple processing engines for computing and self-driving AI. These cars will be able to navigate routes and park themselves autonomously. Over time, new capabilities will be added online. Nvidia will split the revenue generated from these upgrades.
This could be a big money spinner for Nvidia. The company believes that by extending these capabilities to a fleet of about 100 million vehicles, the market has the potential to grow to $700 billion. Sounds good!
