2 Things to Know About NVIDIA’s Mercedes-Benz Deal
NVIDIA (NASDAQ: NVDA) and the Mercedes-Benz division of Daimler AG (OTC: DMLRY) (OTC: DDAIF) are teaming up to truly build a computer on wheels. The two companies recently announced a collaboration to build a new computing system for cars, powered by NVIDIA's DRIVE AGX Orin technology. This new high-performance car computer will be used in new vehicles from Mercedes-Benz starting in 2024. NVIDIA's technology will allow these cars to drive regular routes autonomously and will include advanced safety and convenience features. But that's only half of it.
The software in these new cars will be completely upgradeable, just like a mobile phone. In a press release, Mercedes-Benz stated, "Customers will be able to purchase and add capabilities, software applications and subscription services through over-the-air software updates during the life of the car."
Turning the car into a software service could open the door to a whole new avenue of growth for NVIDIA's automotive business. Here's a look at the size of NVIDIA's automotive segment, and what this deal could mean for growth. Potential investors need to know that this deal will take some time to come to fruition, but that it could pay off handsomely because of how it's structured.
Source Fool.com