• Nvidia CEO Jensen Huang used CES 2025 as an opportunity to highlight autonomous vehicle tech.
• Nvidia's Orin chips will power Toyota's driver-assist features, in a new partnership.
• The chip designer offers a "shot in the arm" for a floundering industry.

Nvidia CEO Jensen Huang says true self-driving cars require three advanced computers.

There's a computer to train the models to understand the world, the computer running simulations that allow these models to practice encountering important but unlikely scenarios, and a computer inside the car itself.

Nvidia has strategically embedded itself in all three key steps that could make every car a self-driving car.

While segment leaders like Waymo and Tesla launch robotaxi fleets and enable drivers to scroll on X while their cars drive them to work, Nvidia approaches the market as an enabler — not a consumer brand.

The chip-design company is building upon a suite of functionalities that already power your car's advanced driver-assist systems, such as automatic lane keeping and adaptive cruise control.

With its long list of heavy-hitting automotive clients, including Toyota, Uber, and Hyundai among others, Nvidia is positioning itself to be the self-driving tech supplier to the automotive industry. To Huang, all these players are headed in the same direction.

"Every single car company will have to be autonomous, or you're not going to be a car company," Huang said at a fireside chat for financial analysts at this year's Consumer Electronic Show.

Huang made autonomous vehicle technology a centerpiece of his CES keynote speech, announcing confidently that self-driving cars aren't coming — they're already here.

"With Waymo's success and Tesla's success, it is very, very clear autonomous vehicles have finally arrived," said Huang onstage.

Self-driving stops and starts

Despite the recent preponderance of driverless Waymo rides, self-driving technology has been in limbo across the auto industry as carmakers cut costs and focus investments on more near-term technology like electric vehicles.

Many traditional carmakers are rethinking expensive autonomous technology development after decades of piecemeal progress and no clear path to profitability — ceding ground to tech-first players.

Who will win the chip war that lives inside the dashboards of most cars remains an open question. But after CES, analysts are much closer to calling the race.

Today's cars are chock-full of chips. Most are far less complicated than the kind needed to offload driving tasks to the computer. Nvidia's competition includes other automotive chip giants like Qualcomm and Israel's Mobileye, which develops microchips and other technologies for the automotive industry.

As AI converges with increased adoption of self-driving technology, Nvidia now appears to be taking the lead, according to Martin French, managing director at automotive consultancy Berylls.

Toyota, the world's largest automaker, will use Nvidia's Orin chips and automotive operating system to power its next generation of driver-assist features, Huang announced.

Orin is Nvidia's solution for putting the computing power and intelligence of AI inside a car. The system debuted in 2019 and has developed into a more all-encompassing solution over time.

Mercedez Benz, China's BYD, and many luxury EV makers have also adopted Orin.

Most of these are not fully self-driving, but the long road between cruise control and realizing the dream of sleeping in the back seat while a car drives itself will have many stops along the way.

Winning Toyota's business is a big deal. McKinsey estimates that the assisted and autonomous driving market could be worth $400 billion by 2035. Nvidia forecasts a $5 billion run rate for its automotive business in fiscal year 2025, a five-fold increase in the company's automotive business from 2023.

Nvidia is also joining forces with trucking startup Aurora Innovation and automotive supplier Continental to deploy self-driving trucks — an announcement that sent Aurora's stock soaring 35% last week.

Beyond the data center

Tesla's self-driving technology, which Huang frequently lauds, is trained on Nvidia GPUs. However, the chips that make Tesla's full-self-driving run are designed in-house and manufactured by Samsung.

As far back as 2019, Tesla and Nvidia shared an understanding of the importance of accelerated computing. But they've been on-and-off partners. Today the partnership is very much on, with Huang and Musk regularly trading praise.

Cementing relationships with Toyota, Tesla, and Aurora puts Nvidia in a good position to be the primary supplier of self-driving technology to the automotive industry.

Few companies can provide chips for cars and also the chips to train the AI needed for self-driving capabilities.

Despite a two-hour CES keynote presentation spanning humanoid robots to AI laptops, Philips Capital analysts called Nvidia's automotive offering the "most significant" revelation at the tentpole event. Averaging less than 2% of total revenue in the first three quarters of 2024, Nvidia's automotive business still pales in comparison to its data center business.

On the company's February 2024 earnings call, CFO Colette Kress said $1 billion of the firm's data center revenue, which is reported separately from the automotive chip business, was attributable to automotive customers.

"They are absolutely positioning themselves as the leader for autonomous technologies, period," French said.

'A shot in the arm' for self-driving

In recent years, major car companies have abandoned their expensive self-driving car projects to focus on electric vehicles.

Ford and Volkswagen pulled funding from now-defunct self-driving startup ArgoAI in 2022, while GM said at the end of 2024 it would end its Cruise division's robotaxi development.

"We've had a lot of bad news around self-driving tech in the past few years — it's been quite downbeat," said French. "Nvidia has reversed that and just gave autonomous driving an absolute shot in the arm."

Investors were growing impatient with the drag on car companies' profits and lacked faith in legacy automakers' ability to develop software, French said. What it took to get investors back on board with self-driving tech was to hear it from a tech company.

"For Jensen — one of the leading people in tech — to get up onstage and tell everyone autonomous driving is here and robotics are just around the corner holds a lot of weight with investors," French said.

Huang is well-known for having an appetite for market-making — frequently saying he looks for "zero-billion-dollar markets" to simultaneously create and conquer. The AV market could still yet be won by one company, according to French.

In a complex regulatory environment, the automotive industry often strives to find a single standard to follow on new tech. That usually creates a period of stiff competition as companies vie to develop the winning technology.

Take electric vehicle charging, for example.

For years, the industry couldn't agree on a single charger type, leading to mismatched plugs and ports for EV drivers searching for juice. But in 2023, the industry finally coalesced around the North American Charging Standard chargers used by Tesla.

Since AI has closed the technological space between self-driving cars and robotics the entire auto industry is about to find out what it's like to be part of Nvidia's next zero-billion dollar market.

• Warner Bros. Discovery is splitting its linear TV business from streaming and studios.
• Comcast last month also spun off its cable networks — except Bravo — into a stand-alone company.
• The moves illustrate a cable business in decline, with both repositioning for M&A opportunities.

Warner Bros. Discovery is separating its linear television business from its streaming business and film studios.

It follows a similar move by Comcast, which announced in November it would spin off all of its NBCUniversal cable networks except Bravo into a stand-alone company.

The new corporate structure will be complete by the middle of next year, WBD said. Unlike Comcast, WBD won't spin its assets off into a separate company.

A new Global Linear Networks division will house TV properties like the Discovery Channel and CNN, while the Streaming & Studios side will be the home of Max and movie studio Warner Bros. Motion Picture Group.

"Our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth," WBD president and CEO David Zaslav said in a statement.

A source with direct knowledge of the matter said the move was meant to clean up the company's structure, which was formed in 2022 from the combination of WarnerMedia and Discovery. (Discovery itself was the product of its acquisition of Scripps Networks in 2017.)

This person said the company is still determining how the specific business units will be divided, and no leadership changes were planned.

The moves by both Comcast and WBD illuminate a cable business increasingly in decline. Their repositioning of properties could help them participate in potential mergers and acquisitions expected to reshape the media and entertainment industry in 2025.

Warner Bros. Discovery was supposed to create scale and value and help compete with Big Tech by mashing WarnerMedia's prestige networks like HBO and CNN with Discovery's lifestyle properties like HGTV. But its stock has sunk to about a third of its value at the time of its creation in 2022. (It was up about 14% Thursday morning on the news of the new organization.)

Industry observers say a Comcast-like spin wouldn't be favorable for WBD because it needs the cash from its linear channels to pay down the heavy debt it took on to form the company.

Still, they see WBD bulking up or shedding channels, with Paramount Global or Comcast seen as the most likely merger partners.

The announcement was met with mixed reactions from analysts. BofA Securities, which has long argued that WBD should sell assets or merge with another company, said in a note that it saw WBD's linear assets as a logical partner for the Comcast SpinCo, while its streaming and studio assets could be an attractive takeover target for multiple suitors.

Longtime ad industry advisor Brian Wieser said that as with the Comcast SpinCo, a WBD separation weakens the company on a few fronts, though. Without being tethered to the cable channels, he said, it'll be harder for WBD's streamer Max to grow its ads business, which is becoming increasingly important. The linear networks will lose leverage in distribution negotiations without Max and have trouble attracting talent if they're seen as a declining business, among other issues, he said.

In July, WBD reportedly floated the idea to investors of essentially undoing the 2022 merger to create the two separate divisions. And in August, the company said its TV assets were worth $9 billion less than it had anticipated just two years ago.

• Despite what some analysts predicted, the sky hasn't fallen at Warner Bros. Discovery without the NBA.
• The company's new deal with the cable giant Comcast is better than some anticipated.
• Those at WBD are thrilled to have saved money on NBA rights while avoiding a carriage-fee disaster.

It looks like Warner Bros. Discovery didn't "have to have the NBA" after all.

A year and a half after WBD's CEO, David Zaslav, gave that quote, the NBA's broadcast partner of four decades was outbid by Disney's ESPN, Comcast's NBC, and Amazon for the league's next TV deal, valued at $76 billion over 11 years.

Zaslav was widely chastised for allowing NBA rights to slip through his fingers after appearing indifferent about their value at a time when live sports seemed like it could be the cable bundle's only hope. Some media analysts said WBD underestimated NBC's bid and that the value of its TV networks would take a major hit without the NBA.

But the worst didn't happen. The media conglomerate has managed to secure higher rates for most of its TV networks from Charter and Comcast, the two largest cable providers in the US, people familiar with the terms of the deals told Business Insider.

The Comcast deal is particularly notable, as some in the industry expected the cable giant to drive a hard bargain. Comcast and WBD surprised the industry on Monday when they announced they'd reached a carriage-renewal deal. The financial terms weren't disclosed, but people familiar with them told BI that Comcast's affiliate fees for TNT would remain flat and that it would pay slightly more for WBD's other networks. In return, Comcast customers in the US, the UK, and Ireland can get Max for free.

This new deal, especially TNT's fees remaining flat without the NBA, looks like a win for Zaslav that certainly wasn't guaranteed just a few months ago.

No NBA, no problem?

Before the Charter and Comcast deals were announced, the general feeling in the media world was that pay-TV providers could play hardball and demand lower affiliate fees for WBD's networks, especially an NBA-less TNT. Shrinking affiliate fees and weaker ad revenue from lower ratings could be disastrous for debt-riddled WBD.

Instead, in mid-September, WBD struck a deal with the cable giant Charter in which it secured a flat rate for TNT and higher rates for other channels like CNN, HGTV, and Discovery. However, doing so took a key concession: giving away its Max streaming service.

The Charter deal was heralded as a success, with Zaslav a "clear winner" in the eyes of the veteran media analyst Rich Greenfield of LightShed. Greenfield had said that if WBD could fend off a major decline in affiliate fees in its next deals, then "investor fears are misplaced."

Still, another major test was ahead: WBD's negotiations with Comcast. Some observers thought WBD got a sweetheart deal from Charter since the cable legend John Malone was on the board of both companies, but they expected Comcast would take no prisoners. LightShed's Brandon Ross predicted that Comcast CEO Brian Roberts would be aggressive in negotiations.

The terms WBD and Comcast agreed to are remarkably similar to WBD's deal with Charter, and each came together more than a year before key deadlines. "Most favored nation" clauses mean cable providers can get similar terms as their competitors, but some analysts thought Comcast would get a better deal that Charter could match in retrospect.

Company insiders seemed pleased with the deals, though the WBD side seemed especially thrilled. Some people within the company believed they'd been vindicated after taking heat for losing the NBA.

Those with knowledge of WBD's thinking said the company could actually be better off without the NBA now that it avoided carriage-fee cuts. Instead of paying up for the NBA, whose ratings are down so far this season, the company can invest in other sports or pay down debt.

Unlike Amazon or Comcast, which have other businesses that can help subsidize their NBA rights, WBD would have needed its NBA investment to pay for itself — mainly through carriage fees, advertising revenue, and subscriptions to Max, which airs the NBA on TNT. And the company wasn't sure that would be possible if it paid significantly more money for fewer games.

So while the WBD hoped to keep the NBA at the right price, it was prepared to walk away — hence Zaslav's surprisingly blunt quote. By opting for plan B, WBD sent the message that its priority was keeping costs in check and paying down debt.

WBD shares are up by 58% since mid-September, suggesting that the market is rewarding the company for passing on the NBA — even though doing so was controversial.

• Rapid advances have turned drones into aerial spies and flying bombs.
• They pose increasing risks to governments, companies, and public utilities.
• Defense companies like MARSS and Dedrone sell systems designed to defeat drones.

Attack drones are evolving so rapidly in the cauldrons of combat in the Middle East and Ukraine that militaries and even law enforcement agencies see a pressing need for defenses.

Companies are rushing to meet these needs even as unmanned aerial vehicles continue to change rapidly to exploit vulnerabilities.

"That's essentially been what we've been trying to do over the last decade — play catch up — and the UAV threats have always been able to stay one step ahead of the counter-[unmanned aerial systems] systems as we're developing them," said Jamey D. Jacob, a mechanical engineer who is director of Oklahoma State University's Unmanned Systems Research Institute.

This demand for defenses is a booming area where start-ups and newer companies compete with the largest defense contractors to build the sensors and weapons to defeat drones and the AI-assisted networks that integrate them into a clear picture for a human operator.

The typical ways to counter drones can be broken into four steps: detect, track, identify, and mitigate threats. Sensors like radars and cameras are essential to the first three tasks. The final step to stop the threat can be accomplished via frequency jamming and electronic warfare (soft-kill) or by physically damaging it (hard-kill).

One company specializing in creating the battlefield awareness systems to spot and defeat drones is MARSS, a global defense technology company.

MARSS' technology is designed to detect, analyze, and annotate the heaps of data collected by its integrated systems and present it in a way "that the drone operator could understand it extremely easily," said Josh Harman, Vice President of Business Development at MARSS Group.

"What was happening when the drone threat started to continually evolve and get more complicated, you had to turn drone sensor solutions into a layered defense solution," he added.

The defense tech company focuses on developing counter-drone platforms that detect threats for civilian, government, and military clientele.

Earlier this year, MARSS showcased its AI-driven NiDAR counter-drone system at the Red Sands military drills in Saudi Arabia, jointly run by Saudi armed forces and the US Army Combat Capabilities Development Command.

"Over the course of the Red Sands exercise, MARSS demonstrated multi-sensor integration on a single UI that was mature and devastatingly effective against the various air threats — reducing the decision cycle of 'detect to defeat' to a matter of seconds," Harman told UASWeekly at the time.

'Golden age of aviation'

Drone defenses are difficult and iterative simply because they are counters to technology that's leaping ahead.

The flexibility and cost-effectiveness of UAVs has ushered in a "new golden age of aviation where you can come up with really neat ideas that you weren't able to develop a decade ago," said Jacob, the UAV expert at OSU.

"What we see in the drone industry is really flipping this conventional aircraft design cycle on its head, which is really what allows new companies to compete because they could be much more nimble and don't have to have the big development budgets that are necessary for the development of full-scale manned aircraft," Jacob told Business Insider in an interview.

The drone makers and pilots are devising ways to dominate the battlefield while drone defenders try to figure out how to neutralize them in a game of spy-vs-spy that has implications far beyond the battlefield. Drone defenses range from radiofrequency detectors to jammers and guns. MARSS sees an opportunity to network them together into an integrated, operator-controlled network.

"Most companies in the market were building specific sensors, whether it be radars, radio frequency, directed energy, kinetic energy, kinetic guns, missiles, or whatever it may be," said MARSS's Harman. "Essentially, you had a lot of different systems out there working independently, not in sync, and you had a low success rate across not only all the US services but also the international services as well."

Another defense company has developed its drone shields from combat use in Ukraine.

Virginia-based drone company Dedrone by Axon has integrated artificial intelligence and machine learning solutions into its open-architecture counter-drone platforms.

"When you think about our use across the world — both on the public safety side, but especially on the national security side — by virtue of being in situ, not only does our AI-ML machine get smarter every day, but we are also able to benefit and improve our system at that same pace that the drones are evolving in the conflict zones," said Mary-Lou Smulders, CMO and head of government affairs at Dedrone.

Dedrone allows a buyer, such as an airport authority or electrical power plant, to set up a network of sensors and jammers and have AI guide the user to quickly identify and respond to threats it detects.

MARSS also says its counter-drone networks are enhanced by supervised machine learning and AI skillset to alert the user sooner.

"It's a big, big deal when you can extend the range on detection, you give the operator a lot more time to act accordingly and to lower any mistakes," Harman said. "When you can eliminate a large portion of all the false positives, you allow the operators to focus on what they need to focus on."