Why Tesla is Miles Ahead in the Self-Driving Race - Nvidia CEO Spills the Beans
Tesla's autonomous driving prowess continues to dazzle the automotive world, and for good reason. In a recent interview with Yahoo Finance, Nvidia CEO Jensen Huang shed new light on why Tesla is leagues ahead of the competition in the field of self-driving cars. This revelation comes amidst Nvidia's thrilling first-quarter earnings and underscores the vital role Nvidia’s AI technology plays in Tesla's bid for driving automation supremacy.
As many know, Nvidia’s AI chips are a cornerstone of Tesla's advanced self-driving ambitions. According to Huang, “People want to deploy these data centers right now. They want to put our [graphics processing units] to work right now and start making money and start saving money.” It is clear that the demand for Nvidia’s cutting-edge AI is not slowing down any time soon.
High Demand for Nvidia’s AI Technology
Nvidia’s transition from its Hopper AI platform to the more advanced Blackwell system has been striking. Despite new models on the horizon, Hopper's demand has flourished. This growth is a testament to the immense demand for the kind of AI horsepower that Nvidia provides. The CEO’s affirmation, “Hopper demand grew throughout this quarter — after we announced Blackwell — and so that kind of tells you how much demand there is out there,” speaks volumes about the future of AI technology in various sectors.
Huang emphasized the complex nature of Nvidia’s data centers, describing them as, “the most complex computer the world’s ever made.” This complexity, understandably, drives robust demand and makes Nvidia’s technology indispensable for market leaders like Tesla.
Record-Breaking Financial Performance
Nvidia's recent financial results have been nothing short of spectacular. The company reported Q1 2024 earnings that blew past Wall Street estimates, with adjusted earnings per share of $6.12 and revenues soaring to $26 billion. These figures indicate a jaw-dropping 461% increase in earnings per share and a 262% surge in revenue compared to the previous year. Looking ahead, Nvidia anticipates even greater success, expecting revenues to climb to $28 billion in the current quarter.
To further boost shareholder confidence, Nvidia announced a 10-for-1 stock split and increased its quarterly dividend from $0.04 to $0.10 per share. It’s no wonder that Nvidia’s stock saw an impressive 9% jump in early Thursday trading.
Tesla’s Self-Driving Software: A Game-Changer
Jensen Huang is particularly excited about Tesla’s advancements in autonomous driving technology. He asserted, “Tesla is far ahead in self-driving cars,” and specifically praised their Full Self-Driving (FSD) software version 12. Described as revolutionary, this software utilizes an end-to-end generative model that learns from watching videos, employing generative AI to predict paths, understand environments, and steer the car.
This breakthrough aligns perfectly with Nvidia's advancements and support, as Huang revealed during Nvidia's Q1 earnings call that the company aided Tesla’s AI training cluster expansion to 35,000 H100 GPUs. This collaboration significantly enhanced the performance of Tesla’s vision-based FSD version 12, ensuring that Tesla stays at the forefront of autonomous driving development.
Looking Towards the Future
The spotlight is now on Tesla as it prepares to unveil its highly anticipated Robotaxi on August 8 this year. This launch could very well set new benchmarks in the automotive and AI industries. The excitement is palpable as enthusiasts and investors alike await what could be the next leap in autonomous transportation.
In addition to Tesla, Nvidia’s AI chips are in high demand among other tech giants like Meta and leading pharmaceutical firms. Whether it's for self-driving cars, advanced cloud computing, or intricate drug discovery, Nvidia’s technology is making monumental impacts across diverse sectors.
Given these developments, it’s clear that both Tesla and Nvidia are steering the future of autonomous driving and AI technology. The question isn’t how far Tesla will go, but rather, how fast it will get there with Nvidia’s pioneering AI at the helm.