Volvo Cars and Swedish car safety supplier Autoliv have signed a deal with US firm Nvidia Corp, best known for its graphics technology in computer games, to develop software systems for self-driving cars.
A joint venture between Volvo, owned by China's Zhejiang Geely Holdings, and Autoliv will work with Nvidia to develop systems that use artificial intelligence to recognise objects around vehicles, anticipate threats and navigate safely.
The venture set up last year, called Zenuity, will provide Volvo Cars with self-driving software which Autoliv will also be able to sell to other carmakers.
Volvo said it aims to have almost fully autonomous cars for sale by 2021.
Volvo has been using Nvidia's artificial intelligence systems in a pilot of semi-autonomous vehicles in its home town Gothenburg in southern Sweden since the start of the year.
German carmaker BMW has joined forces with US chipmaker Intel and Mobileye, the Israeli vision system and mapping expert, to develop a self-driving platform, which is targeted for production in 2021.
US parts maker Delphi Automotive and tyremaker Continental has since joined the tie-up.
In April, Germany's Daimler formed a similar alliance with supplier Robert Bosch to speed development of self-driving vehicles.
© Thomson Reuters 2017