Investing.com — Tesla (NASDAQ:TSLA) stock fell 3% Tuesday after Nvidia (NASDAQ:NVDA) announced a new family of open-source AI models and tools aimed at accelerating autonomous vehicle development.
The Alpamayo family of AI models, unveiled by Nvidia at CES, is designed to bring “humanlike thinking” to autonomous vehicle decision-making through reasoning-based vision language action models. Nvidia CEO Jensen Huang specifically noted that while Tesla and Waymo have robust proprietary autonomous driving systems, Nvidia is “doing it for everyone else.”
By open-sourcing these models, Nvidia is enabling any automaker to deploy competitive autonomous vehicle technology, potentially threatening Tesla’s lead in the self-driving space. The move could allow companies like Lucid, Mercedes-Benz, and BYD – all Nvidia customers – to offer Tesla-like driving features.
Stifel analyst Ruben Roy, who maintains a Buy rating and $250 price target on Nvidia, noted: “By open-sourcing the ’science’ (Alpamayo), NVIDIA ensures that any OEM can deploy a competitive AV stack, thereby expanding the total addressable market for NVIDIA’s Data Center (training) and Drive (inference) hardware. The Alpamayo models serve as the ’training factory.’ By providing the high-quality data and teacher models, NVIDIA locks developers into the DRIVE AGX Hyperion and Blackwell/Rubin (and beyond) hardware lifecycle for distillation and deployment, which could be a positive longer term.”
Nvidia’s approach differs from Tesla’s as it isn’t making cars or running robo-taxi services. Instead, Nvidia is focusing on providing the underlying technology and tools that enable other companies to develop autonomous vehicles, potentially increasing competition in the space where Tesla has been a frontrunner.
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