Nvidia (NVDA - Get Report) and Volvo (VLVLY) are teaming up to build Volvo's next generation of vehicles.

At a keynote in Munich, Germany on Wednesday, Nvidia CEO Jensen Huang said that the Swedish automaker is using an Nvidia computer, called Drive AGX Xavier, to power its line of vehicles starting production in early 2020. The computer will be used to power automated driving capabilities as well as energy management and other services, Nvidia said on a call with reporters.

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The Drive AGX computer encompasses Ndivia's Xavier unit, which it calls the first processor system built for autonomous driving, encompassing six processors in total. The Drive AGX Xavier system includes inputs for the sensors included in autonomous cars, and its development kit was released worldwide in September.

"As a world leader in safety technology and innovation, Volvo understands there is a direct connection between safety, comfort and the computing capability inside the vehicle," said Nvidia CEO Jensen Huang in the Wednesday keynote.

Nvidia and Volvo have an existing relationship in automotive development. The two companies kicked off partnership to build systems and software for autonomous cars in June 2017 along with two other companies, Zenuity and Autoliv. In July, Nvidia also teamed up with Bosch and Daimler AG to jointly produce and test autonomous taxis.

In a press release, Nvidia and Volvo said that the next generation of Volvo cars will initially deliver Level 2 automated driving features and higher. Level 2 autonomy is defined by the Society of Automotive Engineers as when "driver is disengaged from physically operating the vehicle by having his or her hands off the steering wheel AND foot off pedal at the same time."

Nvidia's stock is up more than 33% year-to-date.