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Nvidia and auto suppliers roll out partnerships to revive stalled self-driving ambitions

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After years of costly failures and repeated delays, the self-driving car industry is once again pushing forward as chipmakers, technology firms and auto suppliers bet that artificial intelligence and deep partnerships can reignite progress. Companies including Nvidia are positioning themselves at the center of this renewed effort, even as automakers remain cautious about costs, scalability and consumer demand.

Fully autonomous vehicles promise to transform transportation, but delivering systems safe enough for public roads has proved far more complex and expensive than initially expected. While a handful of players such as Waymo and Tesla have chosen to pursue in-house development, legacy automakers including General Motors and Ford Motor have pulled back from their own fully autonomous programs.

At this year’s Consumer Electronics Show in Las Vegas, a wave of new collaborations signaled fresh momentum. Amazon Web Services and German supplier Aumovio announced a partnership to support the commercial rollout of self-driving vehicles. Autonomous trucking firm Kodiak AI teamed up with Bosch to scale production of autonomous hardware and sensors.

Nvidia also unveiled its next-generation autonomous driving platform, which will underpin a robotaxi alliance involving Lucid Group, Nuro and Uber. Separately, Mercedes-Benz said it will launch a new advanced driver-assistance system in the United States later this year, powered by Nvidia chips, allowing limited autonomous operation on city streets under driver supervision.

Artificial intelligence is increasingly seen as the key to overcoming some of the industry’s biggest hurdles. Generative AI tools are speeding up development and validation while reducing the resources required, according to Ozgur Tohumcu of AWS, who described AI as a “big accelerant” for autonomous driving.

Western automakers are also feeling pressure from China, where regulators last month approved two vehicles with Level 3 autonomous capabilities, allowing hands-off driving under certain conditions. Still, industry leaders caution against unrealistic expectations. Jochen Hanebeck, CEO of Infineon, warned against “market fantasy” that fully self-driving cars could soon become commonplace, noting that automakers currently prefer revenue-generating Level 2 driver-assistance systems.

Robotaxi trials are expanding in small pockets across China, the United States, Europe and the Middle East, but scaling them remains costly. According to Jeremy McClain, expanding coverage requires massive data, fleets and logistics investments.

The industry’s long history of hype still looms large. Tesla CEO Elon Musk famously predicted in 2019 that a million self-driving Teslas would be on the road within a year, yet only launched a limited robotaxi service last year. Early setbacks, including the shutdown of GM’s Cruise unit after a high-profile accident, forced many automakers to retreat.

Nvidia executives argue that AI breakthroughs are finally addressing long-standing weaknesses, particularly in handling rare “edge cases.” Ali Kani said foundational advances are making the technology feel closer to readiness. Analysts, however, say Tesla still holds a significant lead, even as Nvidia’s open-source platform gives rivals a shared alternative.

AI and Self-Driving Technology Take Center Stage at CES as Automakers Pull Back on EVs

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Autonomous driving and artificial intelligence are set to dominate the agenda at the Consumer Electronics Show in Las Vegas, as automakers scale back electric vehicle plans and look to AI-driven technologies as their next growth engine.

With EV demand cooling amid policy changes under Donald Trump and rising costs, most major automakers are skipping new EV launches at CES this year. Instead, suppliers and startups are expected to showcase advances in self-driving hardware, software and AI-powered driver assistance.

Industry leaders say investor attention is shifting toward autonomy. Recent moves — including limited robotaxi launches by Tesla and rapid expansion by Waymo — have renewed optimism after years of safety incidents, heavy spending and regulatory hurdles.

AI will feature prominently beyond vehicles, powering robots, wearables and smart devices. Keynote speakers include Jensen Huang of Nvidia and Lisa Su of Advanced Micro Devices.

Cost pressures remain a major concern. Automakers are absorbing higher tariffs and facing intensifying competition from Chinese rivals, prompting a sharper focus on efficiency and capital discipline as they bet that AI and autonomy — not EVs — will define the industry’s next phase.

U.S. Safety Regulators Probe Waymo Robotaxis Over School Bus Incident

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U.S. auto safety regulators have opened a preliminary investigation into Waymo, Alphabet’s self-driving car unit, after reports that one of its robotaxis failed to stop properly for a school bus in Georgia. The probe, launched by the National Highway Traffic Safety Administration (NHTSA), covers about 2,000 vehicles equipped with Waymo’s fifth-generation Automated Driving System.

The investigation follows a media report showing a Waymo vehicle maneuvering around a stopped school bus with its red lights flashing and stop arm extended while children were disembarking — a clear violation of school bus safety protocols. NHTSA said the vehicle initially stopped before moving around the bus, suggesting a potential software or perception failure.

Regulators noted that given Waymo’s extensive operations — the company’s autonomous cars have logged over 100 million miles and currently drive 2 million miles per week — similar incidents could have occurred previously. The agency emphasized the need to evaluate how Waymo’s technology responds to critical real-world safety cues, particularly around children and pedestrians.

Waymo acknowledged the event, saying it has already implemented software improvements to enhance behavior around school buses and will issue further updates soon. “Driving safely around children has always been one of our highest priorities,” a company spokesperson said, explaining that the vehicle’s sensors may not have initially detected the flashing signals due to its angle of approach.

The company operates a fleet of over 1,500 driverless vehicles in Phoenix, San Francisco, Los Angeles, and Austin. The new probe comes months after NHTSA closed another 14-month investigation into Waymo’s earlier collisions with stationary objects, which led to two vehicle recalls.