The self-driving car industry has bounced back from a Cruise incident in 2023 thanks to advancements in generative AI. These innovations in AI robotics now place the industry on the verge of potentially exceeding US$1 trillion, highlighting it as a notable force in technology.
The Consumer Electronics Show (CES) in 2025 reflected robust interest in autonomous vehicles, despite a noticeable decline in automotive supply chain participation. The event spotlighted two major players in the realm of self-driving car chips: Nvidia and Qualcomm. Both companies not only demonstrated their technological prowess but also underscored strategic partnerships that point to an escalating rivalry.
Nvidia, with its partnership with MediaTek, has shown considerable promise in the smart cockpit domain. MediaTek, already a formidable force in the mobile phone market, is aggressively expanding into the Chinese automotive market. This move aligns well with China's push for cost-effectiveness and self-sufficiency as domestic manufacturers seek partners to bolster their independence.
At CES 2025, Nvidia's CEO, Jensen Huang, predicted that self-driving cars would become the first trillion-dollar industry in robotics. Over the next few years, the development pace of autonomous vehicles is expected to accelerate significantly. Nvidia's Cosmos platform can generate physically perceptive virtual environments, a crucial developmental tool analogous to large language models in AI.
As vehicles continue to integrate smarter technologies, Qualcomm is poised to experience rapid growth in its automotive revenue. The company's suite of services for vehicle automation has reinforced its market position despite the trend of domestic manufacturing push for autonomy. Qualcomm is on track to launch its Snapdragon Cockpit Elite and Snapdragon Ride Elite systems by 2025, with vehicles fitted with these systems anticipated in China's market by 2026 and subsequently globally.
Both Nvidia and Qualcomm have underscored the importance of building an ecosystem through partnerships. This strategic collaboration ensures sustainable growth and continuous innovation, resisting the fate of being transient technological fads. Nvidia's CES 2025 partners, including Uber and Wayve, highlight AI model development and driving data utilization, indicating a concerted effort to enhance safety and performance. Additional collaborations with Toyota, Aurora, and Continental further solidify its standing in the AI solutions sphere for self-driving cars.
Conversely, Qualcomm's expansive network includes collaborations with Leapmotor Technology, joint ventures with Stellantis, and integration across driving and cockpit solutions in partnership with prominent industry players like Hyundai Mobis, Mahindra & Mahindra, and Panasonic Automotive Systems. This comprehensive approach is indicative of Qualcomm's intent to dominate the automotive automation landscape.
These developments underscore a critical juncture for the self-driving car industry, with a focus on collaboration and strategic partnerships signaling a future characterized by sophisticated, intelligent vehicles. The race between Nvidia and Qualcomm to dominate this transformative market is poised to drive innovation and reshape the future of transportation.