The headline is misleading. It's only about the kernel module. The driver itself will stay proprietary.
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Is this actually good or is it just performative PR?
It's the legally required minimum to ship cars with Nvidia hardware and an embedded Linux OS.
But this is the part where being open source is most important. For security, maintainability and convenience reasons
One could even argue if the usespace part, the OpenGl or Vulkan implementation, is still 'a driver'. (I think it is, at least partially)
It's the part that can legally be distributed with Linux distributions (including in-car OS) due the kernel's license. The actual functionality is in the proprietary user space driver
whoa, did someone finally show them that Linus clip?!
I guess this means that not having to rely on dkms for hardware means being able to run the latest kernels without the hardware being disabled.
It's not likely that the driver will be mainlined anytime soon, so no. It's the same as with the proprietary kernel driver, except maybe some being able to patch problems with newer kernel versions by themselves.