GM partners with Nvidia to boost AI in vehicles after Cruise shutdown

GM and Nvidia have formed a strategic partnership that expands the automaker’s AI capabilities both in vehicles and factories, signaling a shift in how traditional automakers are approaching autonomous technology. This collaboration comes as automotive companies increasingly turn to established AI hardware providers rather than developing proprietary systems, with GM pivoting from its earlier strategy following the shutdown of its Cruise robotaxi business last year.

The big picture: GM will leverage Nvidia’s AI chips and software to develop autonomous vehicle technology and improve manufacturing operations.

• The partnership will focus on building AI systems using Nvidia’s platforms to train manufacturing models for factory planning.
• GM also plans to integrate Nvidia’s autonomous technology into future advanced driver-assistance systems.

Industry context: GM joins a growing list of major automakers partnering with Nvidia for autonomous driving capabilities.

• Toyota, Hyundai, BYD, Mercedes-Benz, and Rivian have all formed similar partnerships with Nvidia this year.
• These collaborations represent a strategic shift as automakers face increasing competition from Tesla, which uses its own proprietary technology for self-driving features.

Strategic pivot: The new partnership marks a change in GM’s autonomous vehicle strategy following recent setbacks.

• GM previously used Nvidia’s chips to power its Cruise robotaxis before beginning to develop custom chips in-house to reduce costs and dependencies.
• The company shut down its Cruise robotaxi business last year to refocus efforts on AV technology for personal vehicles.

Revenue implications: GM sees significant financial potential in its advanced driver-assistance offerings.

• The company has forecast that its Super Cruise technology would generate approximately $2 billion in annual revenue within five years.
• Super Cruise is currently offered free for three years, after which customers can purchase subscriptions for $25 monthly or $250 annually.

Behind the numbers: While specific financial terms weren’t disclosed, a GM spokesperson confirmed the company will purchase chips from Nvidia for driver-assistance technology as part of their strategic collaboration.