Nvidia Corp. announced late Tuesday a partnership with German car maker Daimler AG and auto-parts giant Bosch Ltd. that will begin testing a robot taxi project in California in less than a year.

Under a partnership announced late Tuesday, Daimler DAI, +1.52% and Bosch US:BSWQY hope to use Nvidia’s NVDA, +1.85% Pegasus AI chipset to power a fleet of Level 4 and Level 5 — with the latter meaning fully autonomous — taxis by “early next decade.”

Following the announcement, Nvidia shares declined 1.1% after hours, following a 1.6% rise in the regular session to close at $253.25.

“It’s happening very soon,” Nvidia automotive exec Danny Shapiro said in a conference call Tuesday. “There’s a lot of work that’s been going on behind the scenes, of course, before today’s announcement. It’s not like we’re just starting today, so it’s well along its way.”

Daimler and Bosch will begin testing the vehicles in Silicon Valley and Stuttgart sometime next year. Bosch and Daimler plan to offer “customers an automated shuttle service on select routes in a city located in the San Francisco Bay in Silicon Valley” in the second half of 2019, the companies said in a statement.

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Financial details of the partnership were not disclosed.

Back in March, Nvidia said it was halting tests of self-driving cars on public roads following a pedestrian death involving an Uber Technologies self-driving vehicle in Arizona. In May, Nvidia Chief Executive Jensen Huang told MarketWatch the pause in self-driving auto tests was not holding the company’s auto business back and that cars should be back out in public “pretty soon.”

Nvidia stock has continued a long run higher this year on hopes for its autonomous-car unit and the performance of its server chips, both of which are fueled by graphics chips utilizing machine-learning techniques. Nvidia shares have gained 30.9% so far this year, while the S&P 500 index has increased 4.5%.