Mercedes, owned by Daimler AG (OTC:DDAIF), will work on creating an automated driving system with Nvidia Corporation (NASDAQ:NVDA), a chipmaker, after a similar joint agreement with fellow German auto giant Bayerische Motoren Werke AG (OTC:BMWYY) was suspended.
Nvidia announced Tuesday that the artificial intelligence-based automated driving system would be ready in 2024.
According to the chipmaker's statement, the main feature of the system would be the ability to automate the driving of regular routes from address to address.
The system will be used in the next generation of Mercedes-Benz vehicles.
Why It Matters
According to Nvidia, the focus of the system is safety. Each vehicle that uses the automated driving system can be updated over the air and enhanced with new driving functions.
The Nvidia-Mercedes partnership comes a mere four days after Mercedes and BMW announced they had halted a joint deal to develop an autonomous driving system citing lack of opportune timing.
Nvidia shares traded 0.3% higher at $379 in the pre-market session on Tuesday. The shares had closed the regular session 0.81% lower at $378.
On Tuesday, Daimler OTC shares closed 0.12% higher at $41.62.