Nvidia Partners with Company to Develop Self-Driving Trucks, Sending Stock Prices Soaring
Aurora Innovation (AUR) stock experienced a significant boost in early Tuesday trading following the company’s announcement of a new partnership during Nvidia CEO Jensen Huang’s keynote at the Consumer Electronics Show (CES). The self-driving technology firm’s stock surged as high as 44% in pre-market trading before settling back to a 40% increase. This marks a substantial growth milestone for Aurora, with its stock having increased by approximately 70% in 2024.
Partnership with Continental and Nvidia’s DRIVE Thor Chips
Aurora Innovation has partnered with German automotive parts manufacturing company Continental to deploy driverless trucks powered by Nvidia’s (NVDA) DRIVE Thor chips. The companies announced their collaboration on Monday, stating that they would work together to bring this innovative technology to the market in the coming years.
The partnership focuses on mass-producing the Aurora Driver, which will utilize a SAE level four system. Continental has confirmed plans to begin producing these vehicles by 2027, with production samples expected to arrive in the first half of 2025.
Aurora’s Progress and Plans
In January of last year, Aurora revealed that it had partnered with Uber (UBER) and FedEx (FDX) to deploy autonomous trucks for delivery purposes. At the time, these vehicles were equipped with a driver ready to take over in case of an emergency.
Initially, Aurora had planned to launch its commercial operations by the end of 2024. However, due to software improvements, the company pushed back its debut and now targets an April launch. The first deployment will involve a single truck monitored remotely on a route from Dallas to Houston.
Nvidia’s Role in Self-Driving Technology
Nvidia has established itself as a key player in the self-driving technology space. Its partnership with Aurora Innovation is just one example of its involvement in this field. In addition, Nvidia has announced collaborations with several other major players, including Toyota (TM), which will utilize its DRIVE AGX Orin system-on-a-chip (SoC) technology for driving assistance purposes.
During his keynote at CES, Nvidia CEO Jensen Huang highlighted the company’s work with numerous automotive companies worldwide, including Waymo (GOOGL), Zoox (AMZN), Tesla (TSLA), BYD (BYDDY), and JLR. He also mentioned Volvo, Waabi, Rivian (RIVN), Lucid (LCID), and China’s Xiaomi as examples of the company’s growing presence in this industry.
Predictions for the Self-Driving Industry
Huang made a bold prediction during his keynote, stating that he believes the self-driving technology market will become a multi-trillion dollar industry. He also highlighted Nvidia’s business growth, which has already reached $4 billion and is expected to exceed $5 billion this year.
Nvidia Stock Performance
In response to the partnership announcements, Nvidia stock saw an almost 3% increase in pre-market trading on Tuesday. Last year, the company experienced explosive growth as the artificial intelligence boom continued to gain momentum.
Timeline of Aurora’s Progress
- January 2024: Aurora announces partnerships with Uber (UBER) and FedEx (FDX) for autonomous delivery purposes.
- End of 2024: Initial target date for commercial launch, which is later pushed back due to software improvements.
- April 2025: Targeted launch date for Aurora’s first deployment involving a single truck monitored remotely on a route from Dallas to Houston.
Key Players in the Self-Driving Industry
- Nvidia (NVDA)
- Toyota (TM)
- Waymo (GOOGL)
- Zoox (AMZN)
- Tesla (TSLA)
- BYD (BYDDY)
- JLR
- Volvo
- Waabi
- Rivian (RIVN)
- Lucid (LCID)
Growth of the Self-Driving Industry
The self-driving technology market is expected to experience significant growth in the coming years. Nvidia’s CEO Jensen Huang has predicted that this industry will become a multi-trillion dollar market, with his company already contributing $4 billion to it and expecting to reach $5 billion by the end of the year.
As companies like Aurora Innovation and Nvidia continue to push the boundaries of autonomous technology, we can expect to see more exciting developments in the self-driving space. With partnerships forming between major automotive players and innovative startups, the future of transportation is looking brighter than ever.
