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PepsiCo’s Mohamed Shelbaya on F&B innovation, partnerships, youth and AI

PepsiCo’s CEO of Beverages – MEA discusses the strategic logic behind the Mercedes-AMG F1 partnership and the company’s focus on catering to MENA’s youth-driven market through innovation, localisation and AI integration

Neesha Salian
Neesha Salian

07 January, 2026

PepsiCo’s Mohamed Shelbaya on F&B innovation, partnerships, youth and AI
Image: Supplied

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The global consumer landscape is undergoing a rapid, digital-first transformation, driven by an engaged and environmentally conscious youth population.

Nowhere is this shift more pronounced than in the Middle East and Africa (MEA), a region defined by its immense demographic dividend, with over 65 per cent of the population under 30, and its accelerated embrace of technology and local pride.

To capture this dynamic market, multinational giants must evolve beyond traditional strategies, focusing on rapid innovation, health and wellness, and deep community integration.

This strategic evolution is perfectly encapsulated by PepsiCo’s recent landmark multi-brand partnership with the Mercedes-AMG PETRONAS Formula 1 (F1) Team starting in 2026.

This alliance, which uniquely positions Gatorade, Sting performance drink, and Doritos together, is a direct response to F1’s explosive, youth-led growth.

As highlighted by a special activation during the 2025 season-ending Abu Dhabi Grand Prix, the partnership is designed to tap into F1’s dramatically expanding audience, which is now approximately 40 per cent Gen Z and Gen Alpha and features a rapidly growing base of young women.

Here, Mohamed Shelbaya, PepsiCo’s CEO of Beverages – MEA, delves into the thinking behind these pivotal moves, detailing how PepsiCo is aligning its business, from R&D to digital marketing, to meet the sophisticated needs of this influential new generation across the MEA region.

What is the strategy behind the new F1 partnership with the Mercedes-AMG PETRONAS F1 Team, and what are the commercial goals?

The decision to partner with the Mercedes-AMG team, which builds on our existing relationship with F1 1, is driven by the massive transformation in the sport, particularly its appeal to younger generations.

Formula 1 now has a viewership of 1.3 billion followers, with 40 per cent being Gen Zs and Gen Alphas, and around 45 per cent being females aged 15 to 24. We aim to tap into this young, engaged audience by associating PepsiCo brands with the excitement and news generated by an F1 team.

The partnership is a three-pronged approach: positioning Gatorade as a sports rehydration solution, where we are partnering with Mercedes’ team through our Gatorade Sports Lab to find hydration solutions for the drivers to give them a performance edge; using Sting, our energy drink aimed at Gen Zs, to energise the crowd and focus on digital platforms for behind-the-scenes content; and leveraging Doritos, whose bold flavour profile aligns well with the bold theme of the sport.

We are looking forward to many activations, digital content, and sports performance hydration solutions, and we even had a surprise activation specifically for the F1 in Abu Dhabi on Sunday, December 7, 2025.

How does PepsiCo view the Middle East and Africa region, and what are the key trends driving your strategy there?

The Middle East and Africa region is strategically critical for us because it has the youngest population globally, with over 65 per cent of the population under 30.

This demographic is tech-savvy, cares deeply about the environment, and constantly seeks innovation.

Key trends driving our strategy include the acceleration of digital speed, which means the wear-out factor for traditional marketing is incredibly fast due to social media, forcing us to constantly innovate and adapt our marketing programmes by moving from traditional celebrity endorsements to influencers and focusing on CSR and environmental initiatives.

Furthermore, the pace of innovation is increasing, demanding that we stay on our toes and innovate much quicker, as market shifts now happen every two to three years.

Finally, localisation is key. We are opening a research and development hub in Riyadh to serve the region.

How do you balance consumer demand for healthier, low-sugar options with the traditional full-sugar portfolio?

Our simple rule is to listen to the consumers, and we don’t try to sell what they aren’t asking for. The trend for healthier options and no-sugar drinks is loud, especially among the younger generation, but there is also a segment, particularly in hot markets like Africa, that still seeks full-sugar options as a cheap source of energy.

The company’s approach is to offer a full portfolio, allowing consumers to choose among low-sugar, no-sugar, and hydrating options such as Gatorade, or full-sugar options like the Sting performance drink. The key complexity comes in the back-office management, which is where we are investing in AI to help us manage a large portfolio.

AI helps us analyse customer data to understand specific outlet needs. For example, a university shop might require a higher index of no-sugar options, allowing us to manage production, go-to-market strategies, and allocate shelf space accordingly.

What is PepsiCo’s commitment to the community and sustainability in the region?

We view our role as going beyond selling; we are here to serve the communities we live in. Our focus areas are on the youth, helping them fulfil their dreams through entrepreneurship and sports; on farmers and sustainable agriculture, which is a big priority given we are an agriculture company, where we support farmers on sustainable practices to conserve water and soil, helping them improve productivity and earn a decent living; and on the environment.

We have serious commitments to reducing our environmental footprint, including water conservation through recycling every drop of water consumed in our plants, aiming to recycle our entire plastic portfolio, and actively seeking ways to reduce the carbon footprint of our plants, trucks, and coolers.

What can readers look forward to in 2026, beyond the F1 partnership?

Consumers are primarily looking for two big things: value and innovation. In terms of value, we are driving productivity within our manufacturing and go-to-market strategies to offset rising commodity prices and ensure we offer the right product at affordable prices.

For innovation, consumers want to see new products, and we are focusing on launching internationally popular products with a local twist, such as the recent launch of Pepsi Cherry in the UAE.

We also plan many new, fresh collaborations, like our successful venture this year with Noon, where they manufactured a 7-Up ice cream, which helps make the brand young, fresh, and very local.

What is the philosophy that has helped PepsiCo build an enduring legacy?

The key to an enduring legacy is being consumer-centric and having the vision to transform, even if it goes against current operations, drawing a lesson from companies that failed because they had the data but refused to adapt.

We are undergoing a major shift in mindset, viewing our portfolio as food and drinks, not just carbonated soft drinks and snacks.

We are also heavily investing in AI to drive productivity and harness data, which is key in this day and age, to totally reshape the business, as data analysis is what will shape our business.

Underlining all of this is our people, who bring the passion, drive, and competitiveness needed to succeed.

What is your personal philosophy for strong leadership?

I am a firm believer that winning as a team is the right way to go. My philosophy is based on building a great team where departments gel together for the greater cause, focusing selflessly on the big picture rather than individual objectives, operating with the belief that “We’re all in this together. We’re in one boat”.

I invest time in the right people, specifically recruiting individuals who are better than I am and can challenge me.

Furthermore, I ensure there is an environment of openness and safety by having an open-door policy to listen to ideas from everyone, regardless of seniority, because when you achieve the finish line with this collaborative approach, the sense of achievement for the whole team is much more profound.

Read: PepsiCo’s Eugene Willemsen says building a culture of sustainability together is critical

UAE public holidays in 2026: Plan ahead to enjoy longer breaks

Islamic holidays in the UAE are confirmed only after official moon sightings and may move by a day

Gulf Business
Gulf Business

07 January, 2026

UAE public holidays in 2026: Plan ahead to enjoy longer breaks
Image: Getty Images/ For illustrative purposes

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Planning your 2026 holidays just got easier. This guide lays out UAE public holidays and shows how to turn your annual leave into longer, more relaxing breaks.

Fixed dates, like New Year’s Day and Eid Al Etihad (UAE National Day), are set by the government, while Islamic holidays, including Eid al-Fitr and Eid al-Adha, are confirmed closer to the day based on moon sightings.

With a little planning, employees in both the public and private sectors can maximise time off and make the most of the year ahead.

How UAE public holidays are set

Under Cabinet Resolution No. 27 of 2024, the UAE Cabinet has the authority to shift most public holidays to the beginning or end of the working week through an official decision. Eid holidays are excluded from this provision and are observed on their actual dates.

The resolution also allows local governments to declare additional public holidays for their own departments and entities, either for specific occasions or at their discretion.

Official UAE public holidays in 2026 apply to both the public and private sectors.

Guide to expected public holidays in 2026

Fixed Gregorian holidays

New Year’s Day, Thursday, January 1
Eid Al Etihad, Wednesday and Thursday, December 2–3

Islamic (lunar) holidays, subject to moon sighting

Eid Al Fitr, predicted from Friday to Sunday, March 20-22
Arafat Day, expected Tuesday, May 26
Eid Al Adha, predicted from Wednesday to Friday, May 27–29
Islamic New Year, expected around mid-June 2026
Prophet Muhammad’s (PBUH) Birthday, expected around late August

Dates for Islamic holidays may shift by one day depending on the official moon sighting announcement.

How to make your leave days count in 2026

March, Eid Al Fitr
Expected to fall from Friday to Sunday, March 20–22
Booking leave from Monday to Thursday, March 16–19, you can turn it into a nine-day break, including weekends.

May, Arafat Day and Eid Al Adha
Expected from Tuesday, May 26, through Friday, May 29
Take Monday, May 25, off and combine it with the surrounding weekend for up to nine consecutive days away from work.

June, Islamic New Year
Expected to fall mid-week in mid-June
Adding one or two leave days around it can comfortably create a five-day break.

August, Prophet’s Birthday
Expected in late August
Taking a day before or after the holiday can stretch it into a long weekend of four or five days.

December, National Day
Falls on Wednesday and Thursday, December 2–3
Add leave on Monday and Tuesday or on Friday to create anything from a four-day break to a nine-day stretch, depending on how well you plan.

Public holiday rules worth knowing

  • Islamic holidays are confirmed only after official moon sightings and may move by a day.
  • Midweek fixed holidays may be moved to the start or end of the working week under cabinet policy, though Eid holidays themselves are not shifted.
  • Holiday announcements apply nationwide across all emirates unless stated otherwise.

Why the sharks bit: PetBae’s journey from startup to scale-up

Founder Joey Chaaya shares how the brand is leveraging its newfound visibility to scale grooming services, optimise its tech stack, and lead a “pet-first” movement across the UAE.

Neesha Salian
Neesha Salian

07 January, 2026

Why the sharks bit: PetBae’s journey from startup to scale-up
Image: Supplied

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Since securing the highest investment offer on Shark Tank Dubai, PetBae has evolved from a niche boarding alternative into a comprehensive digital home for the region’s pet parents. In this conversation with Gullf Business, founder Joey Chaaya shares how the brand is leveraging its newfound visibility to scale grooming services, optimise its tech stack, and lead a “pet-first” movement across the UAE.

When we last spoke in 2023, PetBae was just beginning to scale. Fast forward to 2025, and you received an offer on Shark Tank Dubai. How did that moment shape the business?

Shark Tank Dubai was a huge moment for us, not just because of the offer itself, which happened to be the highest on that episode, but because of what came after. The visibility and credibility that came with being featured on the show really pushed the brand forward.

From a marketing standpoint, it gave us a powerful stamp of validation; “as seen on Shark Tank” still resonates with users, partners, and even investors. It opened a lot of doors, helped us reach more pet parents, and reinforced that we’re solving a real need in the region.

You talked about building a home-based alternative to traditional pet boarding. How has that vision evolved over the past year?

That original idea still sits at the heart of what we do — personalised, cage-free care in a home-based environment, but we’ve evolved into something much bigger. Over the past year, we’ve heavily optimised the app to make the user experience smoother, faster, and more intuitive.

We’ve expanded the platform into a more complete ecosystem, where pet parents can now find not just sitters and walkers, but also grooming services. We’re building toward a future where PetBae is the trusted platform pet parents open for everything. The idea is to create one seamless platform where pet owners can find everything they need: reliable, community-driven, and easy to use.

Grooming is your latest offering. Why was that the next logical step?

Grooming was one of the most requested features from our community. Instead of building a grooming service from scratch, we took an aggregator approach, partnering with established and trusted grooming businesses across the UAE and integrating them directly into the app. That way, users can book from a list of trusted local providers with the same ease and confidence they use to book a sitter.

We’re also going to be adding a feature where sitters on our platform can offer grooming as an add-on, which is great for pets who feel more comfortable staying with someone familiar. It’s all about making things simpler, more flexible, and more personalised for both pets and their humans. We’re also offering exclusive discounts to encourage users to try it, and the response has been really strong.

What’s the big vision from here? Where do you see PetBae in the next two to three years?

Our goal is to become the go-to platform for pet care across the GCC and beyond. We’re constantly improving our tech stack to make life easier for pet owners and better for the pets themselves. That means expanding our services, entering new markets, and continuing to invest in trust, quality, and user experience.

We’re not just building an app, we’re building a movement that celebrates the bond between people and their pets, and we’re doing it from right here in the UAE. The ultimate goal is to make the PetBae app a true ecosystem for all things pet-related.

What’s changed for you and for PetBae since receiving the investment offer on Shark Tank Dubai?

The visibility and credibility from Shark Tank Dubai opened so many doors. It brought new users onto the platform, made it easier to form partnerships, and gave our team a massive boost of momentum. From a marketing perspective, it elevated our brand in a way traditional campaigns rarely can—people saw the story behind the product, and that emotional connection translated into engagement.

We saw organic traction spike across our channels, app installs increase, and conversations around PetBae take on a new level of seriousness, especially from partners and pet owners who had never heard of us before.

Internally, it pushed us to level up, from improving the app experience to expanding into new services like grooming. It reminded us that we’re not just building a product, we’re building trust. And when people believe in what you’re doing, you naturally raise the bar and hold yourself to it.

Read: Pet-friendly communities: Co-existing with your furry friends in UAE

How BAT is turning to science to reinvent its business

The company is reshaping its product strategy and research priorities around non-combustible alternatives

Gareth van Zyl
Gareth van Zyl

06 January, 2026

How BAT is turning to science to reinvent its business
Inside BAT's Southampton research and development facility, where scientists are central to the company's long-term transformation. (Image: Supplied)

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Advances in scientific research are changing how one of the world’s most closely monitored consumer industries approaches risk, responsibility and long-term sustainability.

Over the past decade, public health authorities have increasingly focused on the role of combustion in driving the majority of health risks associated with traditional tobacco use.

That distinction has become a reference point in how companies such as British American Tobacco (BAT) reassess product development.

According to the World Health Organisation (WHO), the health risks associated with traditional cigarette use stem primarily from the toxic by-products created during combustion. Cigarette smoke contains more than 7,000 chemicals, many of which are harmful or carcinogenic.

This evidence has shaped international harm-reduction debates, particularly around whether non-combustible alternatives can reduce exposure for adult consumers who would otherwise continue to smoke.

BAT says this scientific understanding underpins its shift towards non-combustible formats, including vapour, heated tobacco and oral nicotine products. Executives describe the strategy as a response to findings emerging from chemistry, toxicology and clinical research.

In several developed markets, policymakers and public health bodies have begun to distinguish between combustible and non-combustible categories when designing regulatory frameworks, while still maintaining controls on marketing, access and youth prevention.

Sweden frequently features in these discussions. Daily smoking prevalence there has fallen to around 5–6 per cent, the lowest level in the European Union, a trend Swedish public health authorities link to a combination of risk-proportionate regulatory oversight, and the uptake of non-combustible alternatives.

Against this backdrop, BAT — founded in 1902 — has set out an ambition to become a predominantly non-combustible business by 2035. The company has stated a target for more than 50 per cent of group revenue to come from non-combustible products by that date.

To examine how that transition is unfolding, Gulf Business visited BAT’s global research and development headquarters in Southampton, UK, where hundreds of scientists and engineers work across product development, regulatory science and long-term research.

“This is not about incremental change,” Dr James Murphy, Director of Research and Science at BAT, told Gulf Business. “Science now sits at the centre of how we operate. We have built a substantial evidence base through chemistry, toxicology and clinical studies, and that work shapes how we engage with regulators and policymakers.”

From regulation to responsibility

BAT operates across more than 180 markets, each with its own regulatory approach.

For Danielle Tower, Group Head of Scientific and Regulatory Affairs, preventing underage use is one of the central concerns as newer product categories expand.

“As we transition towards non-combustible products, we have to ensure they are used as intended, by adult consumers only,” Tower said. “Underage access prevention remains one of our top priorities.”

To support enforcement at the retail level, BAT is turning to technology to improve age-verification processes. One example is the use of artificial intelligence-based facial age estimation tools, such as Yoti, designed to help retailers apply age restrictions more consistently.

“The system determines whether a customer is above or below a defined age threshold,” Tower explained. “A photo is taken and immediately deleted, but from that image the technology can estimate age with a high degree of accuracy.”

Danielle Tower, group head of scientific and regulatory affairs, addressing a media delegation. (Photo: Gulf Business)

Tower said independent validation places the system’s accuracy at 99.3 per cent, giving retailers additional confidence in enforcing age-restricted sales. She also noted that similar tools could apply across other regulated categories, subject to regulatory approval.

Designing safeguards

BAT has extended its focus on responsibility into product design, reflecting a wider shift across regulated industries to embed safeguards directly into systems rather than relying solely on post-market enforcement.

“In our R&D work, we are increasingly exploring products with built-in age-verification and authentication features,” Tower said. “Connectivity, device controls and other technologies all form part of that thinking.”

While incremental, these measures aim to reinforce intended use and reduce misuse over time.

Another challenge that continues to test regulatory systems globally is illicit trade.

It is estimated that around 1 in every 10 cigarettes consumed worldwide comes from illicit channels, according to the WHO.

This illicit trade costs governments across the globe more than $47bn in lost tax revenues annually, the WHO further states.

Tower described it as a clear example of where regulation loses effectiveness if enforcement cannot keep pace.

“Illicit products bypass safety standards, undermine legitimate supply chains and erode trust,” she said. “Manufacturers can only do so much. Policymakers and regulators play a critical role in setting rules that are enforceable and properly resourced.”

BAT’s evolution reflects a broader shift among global legacy businesses redefining their futures, where longevity increasingly depends on aligning business models with scientific evidence, regulatory credibility, and public trust.

This requires sustained investment in research and a shared commitment to reducing harm.

Oman’s 2026 budget: Education, health, and jobs get major boost

Social spending remains a priority. The 2026 budget allocates OMR614m for the social protection system, benefiting over 1.6 m citizens

Nida Sohail
Nida Sohail

06 January, 2026

Oman’s 2026 budget: Education, health, and jobs get major boost
Image credit: Getty Images

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The Sultanate of Oman announced its General State Budget for 2026, with total estimated revenues projected at OMR 11.447 bn, based on an average oil price of $60 per barrel. This represents a 2.4 per cent increase over approved revenues for 2025.

Total public expenditure for 2026 is estimated at approximately OMR11.977 bn, up 1.5 per cent from the previous year. The estimated budget deficit stands at OMR530m, a 14.5 per cent decline from 2025, accounting for 4.6 per cent of total revenues and 1.3 per cent of GDP, according to an Oman News Agency report.

Read more-How Oman’s new digital banking regulations are reshaping the financial sector

The budget was unveiled during a press conference at the Ministry of Finance, detailing the financial framework for the Eleventh Five-Year Development Plan (2026–2030) alongside preliminary results for 2025.

Sultan Salim Al Habsi, Minister of Finance, emphasised Oman’s ongoing economic growth, noting that the projected real GDP at constant prices is expected to reach OMR39.2bn by the end of 2025, up from OMR34.5bn in 2021, a 14 per cent increase during the Tenth Five-Year Plan.

Inflation remained stable, with an average rate of 0.9 per cent through November 2025, supported by government policies on petroleum, electricity, water subsidies, and essential commodities.

Investment and market performance

Minister Al-Habsi highlighted the rising confidence in Oman’s business environment, which has driven Foreign Direct Investment (FDI) to OMR30.3bn by Q3 2025, a 71 per cent increase since 2021.

The Muscat Stock Exchange also showed strong performance, with market capitalisation rising 60 per cent since 2020 to OMR32.2bn.

Trading values surged by over 1013 per cent compared to 2020, positioning Oman among the GCC’s top-performing markets in 2025 and ranking fourth globally.

The Oman Investment Authority contributed significantly to economic growth, with assets reaching OMR21bn by the end of 2025.

Investments spanned 50 countries, promoting knowledge transfer, human resource development, and revenue contributions of over OMR4.4bn during the Tenth Five-Year Plan.

The Future Fund Oman approved 164 projects worth OMR462m by 2025, including OMR104m in investments for startups and SMEs, supporting private sector growth and innovation.

Fiscal discipline and non-oil growth

Fiscal improvements have been achieved due to rising global oil prices and government measures to enhance fiscal sustainability. The fiscal breakeven oil price fell from over $100 per barrel pre-Tenth Plan to $68 per barrel in 2025. Non-oil revenues also grew by 41 per cent, from OMR2.1bn in 2020 to OMR3.5bn by the end of 2025.

Additional revenues from the Tenth Five-Year Plan, totaling OMR11.291bn, were allocated strategically between social spending (OMR2.687bn), economic expenditure (OMR3.837bn), and debt reduction (OMR4.767bn). Governorate development projects received OMR983m, up from OMR285m in 2021.

Social development and infrastructure investment

Social spending remains a priority. The 2026 budget allocates OMR614m for the social protection system, benefiting over 1.6 m citizens.

Education will receive 4,000 new teachers, while the Ministry of Health will hire 3,706 new staff. A total of 113 new schools and 11 hospitals, along with 19 health centers, are under construction, with many expected to be completed by 2026–2027.

Infrastructure development continues with 2,525 km of roads planned at an estimated OMR2.7bn. Housing initiatives, including the “Iskan” program, received OMR545 m during the Tenth Plan, with a reinforced loan portfolio and reduced waiting times.

The government also set aside OMR400m annually for Economic Transformation Projects, increasing total allocations for strategic projects to OMR1.3bn in the Eleventh Five-Year Development Plan.

2026 budget allocation highlights

  • Total revenues: OMR11.447bn (net oil: OMR5.752bn, net gas: OMR1.961bn, non-oil: OMR3.734bn)

  • Total expenditure: OMR11.977bn

    • Current expenditure: OMR8.771bn (73 per cent of total)

    • Defense & security: OMR3.160bn

    • Civil ministries: OMR4.700bn

    • Public debt service: OMR911m

  • Contributions and other expenditures: OMR1.906bn (16 per cent of total)

  • Social and essential sectors: OMR5.2bn (44 per cent of total)

Education receives 40 per cent of the social and essential sector allocation, followed by Social Security and Welfare (26 per cent), Health (25 per cent), and Housing (9 per cent).

Higher education initiatives target 11,425 new scholarship students, with ongoing upgrades to Sultan Qaboos University and the University of Technology and Applied Sciences.

Debt and employment measures

The government plans to finance 2026 needs through domestic borrowing of OMR902m, external borrowing of OMR990m, and drawing OMR400m from reserves. Public debt is projected to reach OMR14.6bn, representing 36 per cent of GDP.

Additionally, OMR100m annually has been allocated for employment programs under the Eleventh Five-Year Plan, including targeted procurement initiatives to reduce unemployment and promote job stability.

Preliminary 2025 financial results

Abdullah Salim Al Harthy, Undersecretary of the Ministry of Finance, reported a 5 per cent increase in general revenues for 2025, totalling OMR11.760bn, driven by a 10 per cent increase in net oil revenues (OMR6.403bn) and a 0.4 per cent increase in net gas revenues (OMR1.784bn).

Total public expenditure rose 4 per cent to OMR12.240bn, with developmental projects contributing to an expected total investment expenditure of OMR1.400bn. Subsidies and social spending increased to support petroleum products, electricity, water, and low-income families. The 2025 financial deficit decreased 23 per cent to OMR 480 m, aided by favorable oil prices.

NVIDIA unveils open-source AI models to support safe autonomous driving

The Alpamayo family is designed to address so-called “long-tail” driving scenarios, rare and complex situations that remain among the biggest obstacles to large-scale autonomous vehicle deployment

Neesha Salian
Neesha Salian

06 January, 2026

NVIDIA unveils open-source AI models to support safe autonomous driving
Image: NVIDIA

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NVIDIA unveiled a new family of open-source artificial intelligence models, simulation tools and datasets aimed at accelerating the development of safer, reasoning-based autonomous vehicles, as competition intensifies to deploy higher levels of self-driving technology.

Announced at the CES technology show, the Alpamayo family is designed to address so-called “long-tail” driving scenarios, rare and complex situations that remain among the biggest obstacles to large-scale autonomous vehicle deployment.

Autonomous systems have traditionally relied on separate perception and planning models, a structure that can struggle when vehicles encounter unfamiliar conditions.

NVIDIA said Alpamayo introduces reasoning-based vision language action (VLA) models that allow systems to analyse cause and effect step by step, improving decision-making, safety and explainability.

The AI models could help autonomous vehicles handle complex environments

“The ChatGPT moment for physical AI is here, when machines begin to understand, reason and act in the real world,” NVIDIA founder and CEO Jensen Huang said in a statement. He said the technology could help autonomous vehicles handle complex environments and explain their driving decisions, a key factor in building trust and scaling deployment.

The Alpamayo family combines three elements: open AI models, simulation frameworks and large-scale datasets.

Rather than operating directly inside vehicles, the models are designed to act as “teacher” systems, which developers can fine-tune or distil into smaller models suitable for real-world use.

NVIDIA said it is releasing Alpamayo 1, a 10-billion-parameter chain-of-thought reasoning model for autonomous driving research, alongside AlpaSim, an open-source simulation platform for closed-loop testing.

The company is also making available physical AI open datasets comprising more than 1,700 hours of driving data collected across diverse geographies and conditions.

The company said the tools would enable a self-reinforcing development loop, allowing developers to train, test and refine reasoning-based autonomous driving systems more efficiently.

Automotive and mobility companies to explore new tech from NVIDIA

Automotive and mobility companies, including Jaguar Land Rover, Lucid and Uber, as well as research groups such as Berkeley DeepDrive, are exploring the Alpamayo platform, NVIDIA said, as they work toward level 4 autonomy, where vehicles can operate without human intervention in defined conditions.

Against a backdrop of slower progress and rising scrutiny in the autonomous vehicle sector, the company said open development and improved reasoning capabilities could help the industry overcome technical barriers and advance safer deployment at scale.

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