Nvidia, Toyota Expand Partnership to Accelerate Physical AI and Smart Cities

As artificial intelligence moves into the real world, “physical AI” — the integration of AI into physical systems — has emerged as a new growth frontier for the technology industry. Chip leader Nvidia and automaker Toyota are deepening their partnership by combining AI, digital twins and autonomous-driving technology. The collaboration could accelerate the development of next-generation autonomous vehicles and robots while extending edge computing into smart factories and urban infrastructure, marking an important step in industrial digital transformation and the deployment of physical AI.

The companies expanded their partnership in July 2026, with Toyota set to use Nvidia's DRIVE AGX platform to develop vehicles featuring L2++ driver assistance. Its subsidiary Woven by Toyota is also using Nvidia H100 chips and the Megatron-Core framework to develop an AI vision engine for Woven City, its experimental city in Shizuoka Prefecture. It is also deploying Omniverse and Isaac Sim to create digital-twin factories and optimize production processes.