Counterpoint Research analyst Kevin Li said NVIDIA Corp (NASDAQ:NVDA) is positioning itself as a full autonomous driving ecosystem player through its “Three Computers and A Five-Layer Cake” strategy, combining AI training, simulation, in-vehicle computing and software tools to support every stage of self-driving development.
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Nvidia Expands Beyond Chips Into Full Autonomous Driving Ecosystem
Li told on Friday that Nvidia defines intelligent driving as a “three computers” problem involving in-vehicle inference systems, cloud-based training systems, and simulation computers. He noted that Nvidia built a complete development loop connecting vehicle data collection, AI model training, simulation testing and deployment.
According to Li, Nvidia further expanded this strategy into a “five-layer cake” architecture that combines open-source AI models with hardware, software and development tools to support automakers across the full autonomous-driving stack.
Nvidia Pushes Reasoning-Based AI For Self-Driving
Li highlighted Nvidia’s reasoning-based VLA model, Alpamayo, as a breakthrough for autonomous driving. He explained that the model combines foundation AI models trained on large-scale video data with language reasoning capabilities, helping autonomous systems handle unfamiliar road situations while reducing the need for massive driving datasets.
He also said NVIDIA uses simulation tools such as Omniverse NuRec and Cosmos to digitally reconstruct real-world driving scenarios, enabling automakers to run millions of validation tests daily and accelerate autonomous driving development.
Nvidia Bets On Long-Term ‘Revenue From Every Mile’ Strategy
Li said Nvidia aims to profit from the overall growth of autonomous driving rather than just selling chips. He noted that even companies building their own chips, including Tesla, still rely on Nvidia for cloud training and simulation tools.
He added that Nvidia continues expanding its automotive ecosystem through partnerships with companies such as Mercedes-Benz Group, Chery Automobile, Pony AI, WeRide, MediaTek, Alibaba, Lenovo Vehicle Computing and ThunderSoft.
Li also said Nvidia believes the “ChatGPT moment” for autonomous driving has arrived, as reasoning-based AI models are beginning to solve many of the industry’s long-standing technical challenges.
NVDA Price Action: Nvidia shares were up 1.12% at $213.86 on Friday morning. The stock is trading near its 52-week high of $216.83, according to Benzinga Pro data.
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