Nvidia, Mercedes Partner to Build Alpamayo AVs by Q1 2026 US

Nvidia and Mercedes-Benz partner to develop autonomous vehicles using open-source Alpamayo AI models, first AV car due in Q1

  • NVIDIA announced a partnership with Mercedes-Benz to develop autonomous vehicles using new Alpamayo AI models.
  • CEO Jensen Huang unveiled the open-source Alpamayo models at CES 2026 as tools for training and improving full self-driving systems.
  • The company said Alpamayo will help cars handle rare scenarios, navigate complex environments, and explain driving decisions.
  • A video demo showed an AI-powered Mercedes-Benz driving through San Francisco with a passenger’s hands in their lap; Huang said the vehicle will be on the road in Q1.
  • The move was framed as a competitive development for firms like Tesla, which does not use Nvidia’s chips but retains market advantages in model availability and popularity.

Nvidia announced at CES 2026 that it has partnered with Mercedes-Benz to begin developing autonomous vehicles using new Alpamayo open-source AI models. CEO Jensen Huang introduced the Alpamayo models as part of a full-stack effort to train vehicles and enhance full self-driving capabilities, and said the first Nvidia AV car will be on the road in Q1.

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Huang described the program as a broad internal effort, saying, “This is our first Nvidia first entire stack endeavor,” and later added, “There’s no question in my mind now that this is going to be one of the largest robotics industries, and I’m so happy that we worked on it. And it taught us an enormous amount about how to help the rest of the world build robotic systems.”

Nvidia presented Alpamayo as a set of models designed to let cars “think through rare scenarios, drive safely in complex environments, and explain their driving decisions,” according to Huang. The company framed the work as combining its chips and software to teach vehicles from human demonstrations and improve decision transparency.

A video included in the presentation showed an AI-driven Mercedes-Benz navigating San Francisco streets while a passenger sat behind the wheel with their hands in their lap. Huang said, “It drives so naturally because it learned directly from human demonstrators,” and added that the system, “but in every single scenario… it tells you what it’s going to do, and it reasons about what it’s about to do.”

The announcement noted broader industry implications, suggesting the partnership could intensify competition with firms such as Tesla, which has pushed toward autonomy without using Nvidia’s chips. The report also acknowledged Tesla’s existing advantages in model availability and consumer adoption.

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