By Michael Dabaie

Mercedes-Benz and Nvidia Corp. said they are working to create an in-vehicle computing system and AI computing infrastructure.

Starting in 2024, this will be rolled out across the fleet of next-generation Mercedes-Benz vehicles, enabling them with upgradable automated driving functions, the companies said.

The new software-defined architecture will be built on the Nvidia Drive platform and will be standard in Mercedes-Benz's next-generation fleet. A primary feature will be the ability to automate driving of regular routes from address to address. In addition, there will future safety and convenience applications. Customers will be able to purchase and add capabilities, software applications and subscription services through over-the-air software updates during the life of the car, the companies said.

Shares of Nvidia, a maker of computer graphics processors, chipsets, and related multimedia software, were up 0.5% to $383.08 in afternoon trading.

"Every future Mercedes-Benz with the Nvidia Drive system will come with a team of expert AI and software engineers continuously developing, refining and enhancing the car over its lifetime," Jensen Huang, founder and chief executive of Nvidia, said.

Ola Kallenius, chairman of the board of management at Daimler AG and head of Mercedes-Benz, said Nvidia's AI computing architecture will @help us streamline our journey toward autonomous driving. These new capabilities and upgrades will be downloaded from the cloud, improving safety, increasing value and extending the joy of ownership for all Mercedes-Benz customers."

Write to Michael Dabaie at michael.dabaie@wsj.com