By Joseph White
DETROIT (Reuters) -Nvidia Corp and MediaTek Inc on Monday said they will collaborate on technology to power advanced vehicle infotainment systems that can stream video or games or interact with drivers using artificial intelligence.
Under the agreement, announced at the Computex technology trade show in Taipei, MediaTek will integrate an Nvidia (NASDAQ:NVDA) graphic processing unit chiplet and Nvidia software into the system-on-chips it supplies to automakers for infotainment displays.
MediaTek systems using Nvidia software would be compatible with automated driving systems based on Nvidia technology, the companies said. Dashboard displays could show the environment around the vehicle, while cameras would monitor the driver.
"The automotive industry needs strong companies that can work with the industry for decades at a time," Nvidia Chief Executive Jensen Huang told a news conference in Taipei, pointing to a long product cycle for car makers.
"The quality, strength and positions of our two companies could give the automotive industry partners that they can build their companies on," he said, adding the partnership would provide chips that can power "every single segment of a car".
In-vehicle displays and entertainment systems are becoming more complex as automakers add features such as gaming, artificial intelligence for voice-activated features, driver monitoring systems and displays related to automated driving.
Qualcomm (NASDAQ:QCOM), MediaTek's chief rival in the smartphone market, has also been courting automakers. Qualcomm and SalesForce earlier this year announced a partnership to develop a new connected vehicle platform.
The partnership with MediaTek gives Nvidia wider access to the $12 billion market for infotainment system-on-chips, the companies said.
At the same event, MediaTek Chief Executive Officer Rick Tsai said the first products were planned for late 2025.
Nvidia has focused on premium automotive brands such as Mercedes-Benz and Jaguar Land Rover. MediaTek, which has its base in the Android smartphone chip sector, sells its Dimensity Auto technology to lower-priced, mass market vehicle lines, and has strengths in mobile connectivity and Android systems.
"There are a lot of segments they are addressing that Nvidia has not addressed," said Danny Shapiro, Nvidia's vice president, automotive.
The companies did not identify future automotive customers.