Nvidia and GM announced a deal for AI, factories, and next-generation automobiles

General Motors and Nvidia have committed to a strategic relationship in which the carmaker would use many of the tech giant’s technologies and artificial intelligence services for next-generation vehicles, advanced driver-assistance systems, and factories.

The firms stated on Tuesday that the new initiatives involve developing proprietary artificial intelligence systems employing Nvidia compute platforms, such as «Omniverse with Cosmos,» to optimize GM’s production planning and robotics.

The Detroit carmaker also stated that it will employ «Nvidia Drive AGX» for «in-vehicle hardware for future advanced driver-assistance systems and in-cabin enhanced safety driving experiences.»

GM declined to provide a price for the new tools with Nvidia. The technology corporation has been working to diversify its automotive business, which has involved significant investment in data centers and GPUs.

According to an internal business email obtained by CNBC, Nvidia expected to reach an agreement with GM for Omniverse by the middle of last year. At the time, two GM insiders said the automaker wasn’t sure Nvidia’s software and GPUs were worth the high price compared to other competitors.

It was not immediately obvious what clinched the deal for GM. However, since then, both industries have faced growing competition from China and unpredictable regulatory changes such as tariffs. GM’s stock is down around 8% in 2025, while Nvidia is down nearly 12% this year.