On Tuesday, Germany based Daimler and the U.S. based Nvidia has unveiled a deal. Under this deal, both the companies will develop Mercedes-Benz cars and equip it with a next-generation chip and software platform. This platform will then be useful in helping vehicles drive themselves.
The deal has come as a response to Tesla’s ability to integrate custom-designed chips. These chips have thousands of lines of code, allowing the company to develop new features faster.
The U.S. electric car pioneer Tesla is leading the ways to develop a software-based vehicle operating system. However, it is facing a grave new challenge from its German ally luxury carmaker Daimler and computer graphics specialist Nvidia.
Tesla’s two biggest rivals Daimler and Volkswagen have excessively criticized the aggressive marketing of their U.S. competitor for its autopilot features. Nevertheless, they have immensely struggled to match their speed to bring unique innovations to the market.
Today, despite Tesla struggling to boost its production, it’s cars boast a longer operating range and more entertainment options due to the instantly upgradeable software. According to its rival Volkswagen, it is a decade ahead of the competition.
With this deal, Mercedes has taken the step to share its intellectual property in exchange for Nvidia’s computer processors and its engineering specialization in AI. This deal is far from the automaker’s traditional approach of doing it alone or even partnering with an existing manufacturer. It marks an attempt to keep up with Tesla.
So far, Mercedes, Audi, and Volkswagen have used a patchwork approach. Also, the German carmakers have attempted to create software with the help of camera and radar sensors suppliers rather than designing a new vehicle. This has made it harder to upgrade their vehicle which is far from Tesla’s comprehensive, upgradeable vehicle operating system.