$NVIDIA (NVDA.US)$CEO Jensen Huang (Jensen Huang) praised it a few days ago$Tesla (TSLA.US)$According to the report, its fully automated driving system (FSD) is currently the most advanced system. And Tesla's FSD also happened to use Nvidia's chip.

In an interview, he said, “Tesla is far ahead when it comes to autonomous vehicles. What's really revolutionary about Tesla's 12th fully autonomous car is that it's an end-to-end generative model.”

“It learns how to drive end to end by watching videos (surround videos) and uses generative artificial intelligence to predict paths and how to understand and drive cars. So the technology is truly revolutionary, and the work Tesla is doing is incredible.” he added.

According to information, Tesla's latest FSD 12 version is currently in the testing phase, and a 30-day free trial was offered to new car owners earlier this year. FSD currently charges $99 per month, or $8,000 upfront. Tesla reported in April that since its debut in March 2021, the cumulative mileage of the FSD has exceeded 1.3 billion miles.

However, it should be noted that FSD is still considered a level 2 autonomous driving system, which means it needs to be used under supervision, and has been subject to recalls and government investigations into its capabilities.

Nvidia benefits

According to Nvidia's first-fiscal quarter results report, its automotive business revenue was US$329 million, which is only a small portion compared to its US$22.6 billion data center business revenue, but it increased 17% month-on-month and 11% year-on-year.

Nvidia's chief financial officer Colette Kress said during the company's earnings call that she expects automobiles to become “the largest vertical sector in the data center (market segment) this year” and potentially become the company's multi-billion dollar business.

When talking about the future development of autonomous driving technology, Hwang In-hoon predicted that one day in the future, “every car” will be equipped with a certain degree of autonomous driving capability. This development will greatly drive the demand for computing power, and Nvidia's chip technology will play a central role in this regard.

“This technology is very similar to that of large language models, but it requires a huge training facility,” he said. For example, to improve Tesla's ability to process large amounts of data, Nvidia said it helped Tesla expand its FSD training artificial intelligence cluster to 35,000 Nvidia H100 GPUs.

At Tesla's performance conference last month, Musk revealed that by the end of 2024, Tesla will have 85,000 Nvidia H100 GPUs to train artificial intelligence.

In addition to Tesla, Nvidia's other customers in the automotive industry include Mercedes-Benz, Jaguar Land Rover, Volvo, and Hyundai, as well as up-and-coming Chinese electric vehicles such as BYD and NIO.

Wall Street is also optimistic

Not only is Nvidia itself, Wall Street is optimistic about its automotive business.

In a report released last Thursday, JPMorgan analysts raised Nvidia's target share price from $850 to $1,150 and predicted that the chipmaker's data center business would grow at an annual rate of 20-30%.

The bank also specifically mentioned that Nvidia is expected to achieve “an increase in automobile revenue of about 14 billion US dollars” within the next three to four years.

Editor/Jeffrey