March 18 (Reuters) - General Motors ( GM ) will use

artificial intelligence chips and software from Nvidia ( NVDA )

to develop autonomous vehicle technology for its vehicles and

improve workflow at its factories, the companies said on

Tuesday.

Traditional automakers have struggled to commercialize

autonomous technology that has been more challenging and

expensive than expected but has emerged as a way to boost sales

and rake in subscription revenue from motorists.

The companies plan to work together to build AI systems

using Nvidia's ( NVDA ) platforms to train AI manufacturing models for

factory planning. GM also plans to use Nvidia's ( NVDA ) autonomous tech

for future advanced driver-assistance systems.

Asked about financial terms, a GM spokesperson said the

companies have a strategic collaboration on using AI in

manufacturing and GM will buy chips from Nvidia ( NVDA ) for

driver-assistance technology.

A slew of automakers and suppliers, including Toyota ( TM )

and Hyundai, have partnered this year with

Nvidia ( NVDA ) to develop their autonomous driving capabilities in the

face of competition from Tesla, which uses proprietary

technology to run its Full Self-Driving system.

GM used Nvidia's ( NVDA ) chips to power its self-driving Cruise

robotaxis. But it started developing custom chips in-house to

reduce cost and dependency before it shut down the robotaxi

business last year to focus instead on AV technology for

personal vehicles.

GM has forecast that its Super Cruise driver-assistance

technology would earn about $2 billion in total annual revenue

within five years. Super Cruise is free for three years, after

which customers are offered subscriptions for $25 a month or

$250 a year.

Other companies that have partnered with Nvidia ( NVDA ) for their

advanced driver-assistance systems include Chinese EV maker BYD,

German carmaker Mercedes-Benz, and U.S. EV startup

Rivian.

GM had previously used Nvidia's ( NVDA ) platforms for training AI

models, including for simulation and validation.

(Kalea Hall reporting in Detroit and Abhirup Roy reporting in

San Francisco; Editing by Rod Nickel)