Kim Heung-soo, left, executive vice president and head of the global strategy office at Hyundai Motor Group, poses with Rishi Dhall, vice president of automotive at Nvidia, after both sides agreed to deepen an artificial intelligence (AI) partnership at the Fontainebleau hotel in Las Vegas, Thursday (local time). Courtesy of Hyundai Motor Group

Hyundai Motor Group has formed an artificial intelligence (AI) partnership with Nvidia to integrate the software and fabless company's AI technologies into the carmaker's key mobility value chain, both companies announced Friday at this year's CES tech fair in Las Vegas.

Under the alliance, Hyundai Motor will adopt Nvidia's AI solutions in areas such as software-defined vehicles (SDVs), robotics and smart manufacturing.

For instance, the carmaker plans to utilize Nvidia's Omniverse digital twin technology to simulate a virtual representation before building new manufacturing facilities.

The technology is expected to enhance production efficiency and improve the quality of end products in the era of smart factories, according to the carmaker.

Hyundai Motor Group is also set to take advantage of the AI chipmaker's Isaac robot development platform to develop more sophisticated AI robots. The vision reflects the carmaker's will to turn its robotics business into its next major revenue generator after acquiring Boston Dynamics in 2021.

In addition, the Korean mobility solutions provider will strengthen its partnership with Nvidia to leverage the tech company's AI expertise in key mobility growth areas, including SDVs and autonomous driving. The carmaker is fully committed to equipping its vehicle lineup with advanced software systems to lead the smart mobility era.

The carmaker said Nvidia's accelerated computing and AI enterprise software will help the group manage the massive amounts of data required to safely develop and train AI models for various mobility applications.

"Hyundai Motor Group is exploring innovative approaches with AI technologies in various fields, such as robotics, autonomous driving and smart factory," Kim Heung-soo, executive vice president and head of the global strategy office at the group, said. "The partnership will accelerate our progress and help position the group as a frontrunner in driving AI-empowered mobility innovation."

Nvidia also spoke highly of the tech alliance with the carmaker, underscoring the importance of AI for safer mobility.

"Accelerated computing, generative AI and Omniverse are unlocking a new era of mobility," Rishi Dhall, vice president of automotive at Nvidia, said. "This partnership will drive the creation of safer, more intelligent vehicles, supercharge manufacturing with greater efficiency and quality, and deploy cutting-edge robotics to help build a smarter, more connected digital workplace."

The latest announcement came a day after Hyundai Motor Group revealed its 24.3 trillion won ($16.67 billion) investment plan for 2025 in Korea. The carmaker plans to allocate a significant portion of the investment to autonomous driving, software, and AI, all of which are identified as the group's next core growth areas.