Nvidia collaborating with Foxconn on electric cars debuts at CES with new graphics cards

Nvidia (NVDA) showed up at CES 2023 with a slew of big announcements on Tuesday, including the news that it is joining forces with Foxconn, which will begin producing electric vehicles based on Nvidia’s Drive Hyperion platform. The company also announced new graphics chips for laptops and improvements to its GeForce Now gaming streaming platform.

News from the automotive industry does not mean that Nvidia is building vehicles itself. Instead, Foxconn, which is expanding its manufacturing capabilities to build electric vehicles for third-party automakers such as Lordstown Motors, will use Nvidia’s Drive Hyperion platform to build cars.

Drive Hyperion is a reference and development that consists of a suite of software and hardware designed to help automakers accelerate the production of autonomous vehicles.

Nvidia works with Foxconn to provide technologies to build electric and automatic cards.  (Image credit: Nvidia)

Nvidia works with Foxconn to provide technologies to build electric and automatic cards. (Image credit: Nvidia)

“Our partnership with Foxconn will provide OEMs developing intelligent drive solutions with a world-class supplier that can scale volume production of the Nvidia Drive Orin platform,” said Rishi Dhall, vice president, automotive, Nvidia, in a statement.

“Foxconn’s decision to extend the Drive Hyperion sensor suite to electric vehicles will help accelerate their path to production without compromising safety, reliability and quality,” added Dhall.

Nvidia is increasingly entering the automotive market, developing the sensors and software that automakers will need so that their vehicles can eventually move around the world without the need for driver intervention.

However, the company’s efforts in the automotive industry still represent a small part of its total revenue. Of Nvidia’s $5.93 billion in revenue in the third quarter, the automotive group attracted just $251 million. Meanwhile, its gaming and data center business brought in $1.57 billion and $3.83 billion, respectively.

In addition to the Foxconn deal, Nvidia has also debuted its latest laptop graphics chips, ranging from the entry-level RTX 4050 to the high-end RTX 4090. According to the company, laptops running on the RTX 40 series should offer up to four times the performance in games like “Cyberpunk 2077 while delivering three times the energy efficiency of previous generation Nvidia chips.

However, if you’re hoping to get your hands on a laptop with an RTX 4080 or RTX 4090, you’ll need to be prepared to shell out some serious cash. We’re talking about a starting price of $1999. Meanwhile, Nvidia’s cheaper RTX 4050-equipped laptops will start at $999.

In addition to the new chips, Nvidia has announced that it is updating its GeForce Now cloud gaming platform. The service that lets you stream games to internet-connected devices will now run on Nvidia’s RTX 4080 graphics cards. Basically, this means players will be able to do things like stream games at 240fps and enable ray tracing on supported games to improve overall lighting.

Nvidia debuted a number of new laptop graphics cards at CES 2023. (Image: Nvidia)

Nvidia debuted a number of new laptop graphics cards at CES 2023. (Image: Nvidia)

However, the upgrade is only available through the GeForce Now Ultimate tier, which costs $19.99 per month. Basic tier subscriptions cost $9.99 per month but do not include new upgrades.

Finally, Nvidia also announced that GeForce Now will soon be available for in-vehicle streaming. The company says Hyundai, BYD and Polestar are working with it to provide game streaming to its main infotainment units on front seat and rear screens when available. Of course, this feature is only available to front seat passengers when the car is parked.

Nvidia’s news comes at a difficult time for the graphics chip giant. Consumers are buying far fewer computers than during the pandemic, and the company’s share price has fallen by around 50% in the past 12 months. But it’s not just Nvidia. Shares of rivals Intel (INTC) and AMD (AMD) have fallen as much as 48% and 54% respectively over the past year.

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