NVIDIA (NASDAQ: NVDA) is working with over 20 automakers to provide Tegra processors for more than 100 different vehicle models from around the world. The chips power the infotainment systems, which require instant responsiveness to keep the distractions to a minimum.
The huge 17-inch high-definition screen in Tesla Motors' (NASDAQ: TSLA) Model S contains a Tegra processor, as will the upcoming Tesla Model X infotainment system.
Motley Fool analyst Rex Moore met up with NVIDIA's Danny Shapiro at the Consumer Electronics Show in Las Vegas. In this video, Shapiro details Tesla and other automotive partnerships his company's involved in – and the large number of vehicles that will carry Tegra chips in the coming years.
A full transcript follows the video.
Rex Moore: What about your partnerships? Tell me about all the automakers that you can, that you're partnered with and what you're doing there.
Danny Shapiro: In addition to Audi here, we're part of work that's going on with a number of different automakers. The VW Group, which Audi is a member of, is a great customer of ours, but also Volkswagen, SEAT, Skoda, and Lamborghini are all using our NVIDIA processors.
The other car we're showing in the booth is a BMW i3. BMW is a great customer of ours, and a whole lineup of cars from BMW are powered by NVIDIA. Tesla, as you mentioned, with the Model S and upcoming Model X, features two of our Tegra processors as well.
Right now we have about 4.5 million cars on the road with NVIDIA processors inside, and that number is going to grow pretty dramatically. We have contracted business for another 25 million cars over the next several years.
In addition, the count is growing over 20 different brands and 100 different models, based on all of our design business in the automotive space.
Rex Moore has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, BMW, NVIDIA, and Tesla Motors and owns shares of Amazon.com, Apple, and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.