Tesla stock falls 3% after Nvidia introduces open-source AI models for autonomous driving

ISTANBUL

Tesla's shares were down around 3% on Tuesday after Nvidia announced new open-source artificial intelligence (AI) models for autonomous driving.

Nvidia introduced the "Alpamayo family" of AI models on Monday with the goal of using reasoning-based vision language action models to enable "humanlike thinking" in autonomous vehicle decision-making. CEO Jensen Huang pointed out that although Waymo and Tesla have strong in-house autonomous driving systems, Nvidia is "doing it for everyone else."

“Not only does it take sensor input and activates steering wheel, brakes and acceleration, it also reasons about what action it is about to take,” Huang said in a statement.

Huang said the first passenger car with Alpamayo built on the NVIDIA DRIVE full-stack autonomous vehicle platform would soon be on the road in the brand-new Mercedes-Benz CLA. AI-defined driving will be introduced to the US this year.

“Our vision is that, someday, every single car, every single truck will be autonomous, and we’re working toward that future,” he added.

Nvidia is making it possible for any manufacturer to implement rival autonomous vehicle technology by making the models open-source, which could put Tesla's dominance in the field in jeopardy.

Companies that use Nvidia, such as Lucid, Mercedes-Benz and BYD, may be able to offer driving features similar to those of Tesla thanks to the move.

Shares of Nvida rose 1.3% on Tuesday.