Please ensure Javascript is enabled for purposes of website accessibility

NVIDIA Acquiring DeepMap Vehicle Cartography Startup

By Eric Volkman - Jun 11, 2021 at 6:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The deal is aimed at strengthening the company's NVIDIA DRIVE system.

On Friday, NVIDIA (NVDA 4.28%) ended its week with the announcement of a pending acquisition. The company said it had reached an agreement to acquire DeepMap, a privately held business that specializes in creating high-definition maps to help guide autonomous cars.

NVIDIA did not reveal the price it has agreed to pay for the company.

It did say that DeepMap will help improve the mapping and localization functions of NVIDIA DRIVE, its software-defined autonomous operations system. 

Car speeding along a highway near dawn or dusk.

Image source: Getty Images.

NVIDIA clearly has long-range hopes for its asset-to-be. The company quoted its vice president and general manager of automotive Ali Kani as saying that, "DeepMap is expected to extend our mapping products, help us scale worldwide map operations and expand our full self-driving expertise."

While NVIDIA is primarily known among the public as a maker of computer graphics cards, over the past few years it has leveraged its expertise to push assertively into self-driving systems.

Yet although much capital has been expended in developing such systems, not to mention accompanying hardware, the world is still quite some distance away from full autonomy. At the moment, according to the Society of Automotive Engineers' benchmark levels of autonomy scale, experts say we are just at, or a bit below, Level 3 (Level 5 is 100% autonomous operation).

Level 3 is defined as when "[automated] features can drive the vehicle under limited conditions and will not operate unless all required conditions are met."

Considering that, NVIDIA's deal looks like a good chess move that could help the company produce meaningful results well down the road if properly integrated and utilized.

Investors like the DeepMap deal. On Friday, they traded NVIDIA stock up by 2.3%, which trounced the 0.2% increase of the S&P 500 index.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
$187.09 (4.28%) $7.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.