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Nvidia's AI Drives Mercedes, Challenges Tesla Autonomy
6 Jan
Summary
- Nvidia's L2 driver-assist system piloted in San Francisco.
- System aims for L4 autonomy, rivals Tesla's Full Self-Driving.
- Rollout to automakers planned for early 2026.

Nvidia is aggressively advancing its automotive business with a new Level 2 driver-assist system, showcased in a Mercedes-Benz CLA navigating complex San Francisco streets. This AI-powered technology, expected to reach automakers in early 2026, represents Nvidia's substantial investment in autonomous driving and aims to compete directly with Tesla's Full Self-Driving.
The system demonstrated advanced capabilities, handling traffic signals, stop signs, and unprotected left turns with confidence, even navigating around obstacles like double-parked cars and pedestrians. Nvidia's approach leverages both its own AI and the vehicle's existing sensors, with a roadmap for Level 4 autonomy trials by 2026 and broader deployments by 2027.
Nvidia plans to release Level 2 highway and urban driving features in the first half of 2026, with urban capabilities expanding later that year. The company is committed to safety and aims to become a leading supplier in the autonomous vehicle market, despite its automotive division's current small share of its overall revenue.




