Nvidia Corp. (NASDAQ: NVDA) shares dipped on Wednesday after the firm announced that it would be joining forces with Daimler and Bosch to bring fully automated and driverless vehicles to city streets. This collaboration promises to unleash what auto industry insiders call Level 4 and Level 5 autonomy—cars that can drive themselves.
Ultimately these companies want to deploy self-driving taxis in California’s Silicon Valley region next year as part of a test program of vehicles designed for city driving.
Executives from the companies would not comment on the potential size or scope of the pilot program. What is known is that California would be the first pilot site, and there could be others that follow.
Under the terms of this deal, Daimler would supply the vehicles and test facilities, while Bosch will provide the many sensors, actuators and control units used in the development process.
Nvidia said in a release:
Our collaboration with Daimler and Bosch will unite each company’s strengths. NVIDIA brings leadership in AI and self-driving platforms. Bosch, the world’s largest tier 1 automotive supplier, brings its hardware and system expertise. Mercedes-Benz parent Daimler brings total vehicle expertise and a global brand that’s synonymous with safety and quality.
Shares of Nvidia were last seen down about 1.5% to $249.10, with a consensus analyst price target of $280.66 and a 52-week trading range of $152.91 to $269.20.