Mercedes and Nvidia: a partnership that could change the automotive industry

Mercedes and Nvidia: a partnership that could change the automotive industry

Mercedes is looking to compete against the industry’s front runners.

Partnerships seem to be this week’s leitmotif, as a new agreement emerged yesterday. Daimler’s Mercedes-Benz announced its collaboration with microchips and software creator Nvidia.

According to their statements, the two of them will develop a computing and artificial intelligence system made to improve automated driving. The new feature will consist of automated driving on a regular route (address to address). Nvidia is also pitching the idea of a level 3 automation system. This type of automation takes control over the car’s functions in certain conditions and areas, such as vehicles moving in the same direction and without passersby. Still, drivers have to be in the car.

Moreover, Nvidia’s system can detect if the driver pays attention to the road by tracking the head and eye movements, and can report drowsiness by monitoring the blink frequency. By preference, the system can alert the driver by audio, visual, or haptic deterrents.

The technology will be a standard feature in all vehicles starting 2024.

This collaboration comes after last week Mercedes and BMW suspended the $1 billion deal by which they would have developed an autonomous driving system. According to both, the time wasn't right for cooperation. Still, taking into consideration the data provided by Auto News, the technology couldn't have been used by Mercedes as soon as it is possible now, thanks to Nvidia.

From a specialist point of view, this is a smart move for both companies. Nvidia enters a market in a partnership with one of the world's premium automobile brands. At the same time, Mercedes-Benz will see its efforts paying off by starting to compete with other top companies such as Tesla when it comes to autonomous driving.

Although this is good news, Daimler's stock price is currently trading lower by more than 3%, while Nvidia closed lower by 0.81%.

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Sources: forbes.com, theverge.com, marketwatch.com

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