Tesla Stock Tumbles 3 Percent as Nvidia Unveils Free AI Models

(MENAFN) Tesla shares tumbled approximately 3% Tuesday following Nvidia's unveiling of open-source artificial intelligence systems designed for self-driving vehicles.

Nvidia launched its "Alpamayo family" of AI frameworks Monday, aiming to deploy reasoning-powered vision language action technology that enables "humanlike thinking" in autonomous vehicle operations. Chief Executive Jensen Huang noted that while Waymo and Tesla possess robust proprietary self-driving platforms, 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 revealed the initial consumer vehicle featuring Alpamayo—built atop the NVIDIA DRIVE comprehensive autonomous vehicle architecture—will imminently hit roadways in the forthcoming Mercedes-Benz CLA. AI-powered driving capabilities will debut in the U.S. during the current year.

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

By releasing these frameworks as open-source technology, Nvidia is enabling any automaker to deploy competing autonomous vehicle capabilities, potentially threatening Tesla's market leadership in the sector.

Manufacturers partnering with Nvidia—including Lucid, Mercedes-Benz, and BYD—may now deliver driving functionalities comparable to Tesla's offerings through this strategic release.

Nvidia shares climbed 1.3% Tuesday.

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