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Nvidia Unveils New Robotics, Gaming Chips, and Toyota Deal at CES 2025

At CES 2025, Nvidia CEO Jensen Huang revealed several groundbreaking products, showcasing the company’s ambitions to expand its business across robotics, gaming, and automotive technology. The announcements highlighted innovations in AI, gaming chips, and collaborations, including a new deal with Toyota.

One of the key highlights was the introduction of Nvidia’s Cosmos foundation models, which use artificial intelligence to generate photo-realistic video for robot and self-driving car training. By creating “synthetic” training data, these models simulate physical environments much more affordably than traditional data collection methods. Unlike the typical approach of placing cars on the road or having humans demonstrate tasks, Cosmos can generate videos based on a text description, adhering to the laws of physics. The models will be made available on an “open license,” much like Meta Platforms’ Llama 3 language models, which have seen widespread use in the tech industry. Huang expressed hopes that Cosmos could revolutionize robotics and industrial AI similarly to the impact Llama 3 has had on enterprise AI.

Despite the excitement, analysts, including Vivek Arya from Bank of America, raised concerns about whether the new robotics technology would substantially boost Nvidia’s sales. Arya questioned the challenge of making the products both reliable and affordable enough to create viable business models, similar to the niche opportunities of autonomous vehicles or the metaverse.

In addition to robotics, Nvidia unveiled new gaming chips, part of the RTX 50 series, that use Nvidia’s Blackwell AI technology. These chips aim to enhance gaming graphics, particularly through ‘shaders’ that add realistic imperfections to objects in video games, such as fingerprint smudges on surfaces. The new chips are also designed to improve the realism of human faces, which is a critical area of focus for developers. Prices for the chips range from $549 to $1,999, with the high-end models set to launch on January 30, followed by lower-tier models in February. Analysts, including Ben Bajarin of Creative Strategies, expect these chips to drive short-term sales growth for Nvidia.

Nvidia also debuted its first desktop computer, Project DIGITS, which is designed for software developers rather than regular consumers. Priced at $3,000, the computer runs on Nvidia’s Linux-based operating system and includes the same AI chip used in the company’s data center products. The desktop, which features a central processor co-designed with Taiwan’s MediaTek, is expected to help individual developers quickly test their AI systems. Project DIGITS will be available in March.

Additionally, Huang announced that Toyota Motor will integrate Nvidia’s Orin chips and automotive operating system into several of its models to power advanced driver assistance features. Although the company did not specify which models would feature the technology, the partnership signifies a growing presence in the automotive sector. Nvidia projects automotive hardware and software revenue will reach $5 billion by fiscal 2026, up from an expected $4 billion in the current year.

Nvidia’s stock surged to a record high of $149.43, increasing its market valuation to $3.66 trillion, making it the second-most valuable listed company in the world, behind Apple.

Hyundai Launches $18,000 EV in Japan to Target Market Dominated by Local Brands

Hyundai Motor has unveiled its plans to introduce the affordable Inster compact electric vehicle (EV) in Japan, priced at 2.85 million yen ($18,000). This marks the cheapest electric vehicle in Japan’s compact car market and is part of Hyundai’s strategy to penetrate a market long dominated by local giants like Toyota, Honda, and Nissan, who have well-established petrol and hybrid vehicle technologies.

The Inster, which debuted in Europe last year and was originally launched in South Korea as the Casper Electric, aims to appeal to Japanese consumers by offering an EV at a lower price point than competitors. For instance, BYD’s Dolphin, launched in 2023, is priced at 3.63 million yen, making Hyundai’s new model a more cost-effective alternative. Deliveries of the Inster in Japan are set to begin in May, as announced by Hyundai Mobility Japan CEO Toshiyuki Shimegi during the Tokyo Auto Salon.

The Japanese EV market has been slow to adopt electric vehicles, with the Nissan Sakura, the most popular EV in Japan, priced at 2.60 million yen, seeing a 40% sales drop last year, with fewer than 23,000 units sold. Despite this, Japan’s passenger car market remains sizable, with approximately 4 million vehicles sold annually.

Hyundai, which has set a goal to increase its sales in Japan by tenfold over the next five years, has faced stiff competition in the market. In 2024, Hyundai sold only 607 vehicles in Japan, while BYD sold 2,223 units. Hyundai’s return to Japan’s passenger car market in 2022, focusing exclusively on electric and fuel-cell vehicles, follows its exit in 2009 due to low sales. The Inster is expected to play a pivotal role in helping Hyundai gain recognition and grow its presence in the Japanese market, a sector largely dominated by Toyota and other local manufacturers.

 

Texas Sues Allstate for Collecting Driver Data Without Consent

The state of Texas has filed a lawsuit against Allstate, accusing the insurer of illegally tracking drivers through their cell phones without their consent. Texas Attorney General Ken Paxton claims that Allstate created “the world’s largest driving behavior database” by paying mobile app developers millions of dollars to secretly incorporate tracking software into apps. The lawsuit, filed in a Texas state court near Houston, alleges that Allstate used the data to justify raising car insurance premiums, denying coverage, and selling the data to other insurers.

The tracking software, developed by Allstate’s data analytics unit Arity, was integrated into widely used apps such as Fuel Rewards, GasBuddy, Life360, and the Allstate-owned Routely starting in 2015. The complaint further asserts that Allstate has also purchased location data directly from vehicle manufacturers, including Toyota, Lexus, Mazda, and Stellantis, to track the movements of policyholders more accurately.

The lawsuit alleges that Allstate’s actions violated Texas laws on data privacy, data brokers, and unfair and deceptive practices by insurers. Texas is seeking restitution, civil fines up to $10,000 per violation, and the destruction of illegally collected data. The state also contends that Allstate profited from this practice by increasing premiums and denying coverage based on the collected data.

This lawsuit follows a similar case filed last August against General Motors, accusing the company of collecting driver data from over 14 million vehicles and selling it to insurers and other businesses without drivers’ consent.