Hard on the heels of last week's news that NVIDIA (NASDAQ: NVDA) and longtime strategic partner Audi plan to introduce an artificial-intelligence-driven car by 2020, the graphics chip leader has announced an even more aggressive A.I.-car timetable with Mercedes-Benz.

According to senior Mercedes-Benz executive Sajjad Khan, "within 12 months we are rolling out a product with NVIDIA" -- an A.I.-powered car.  NVIDIA founder and CEO Jen-Hsun Huang shared news of the pending vehicle -- a product of the two companies' three-year partnership -- at the Computer Electronics Show (CES) in Las Vegas.

Over the past several years, the partnership between the two leaders in their respective industries has grown. Khan noted that Mercedes-Benz has a team in California working with NVIDIA, while the chipmaker has a group of engineers working at the automaker's site in Stuttgart, Germany.

NVIDIA's expansion beyond traditional graphics processing units (GPUs) for mobile and other computing devices has proved profitable for shareholders. With its stock up more than 260% in the past year, NVIDIA is on a roll that appears to have no end. In addition to its efforts in the expanding virtual reality market, the potential of NVIDIA's self-driving car initiatives are nearly limitless.

As per one recent report, the autonomous car market could  climb as high as $42 billion by 2025, with as many as 21 million self-driving vehicles on the road just 10 years later.

NVIDIA stock was up more than 3% in midday trading.


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