The companies didn't announce any timelines, but Toyota could be setting the stage for future vehicle announcements, be it EVs or gas-powered cars.

Tesla has some AI-related car competition.Alphabet’s Waymo and Toyota Motor announced a preliminary agreement on Tuesday to “explore a collaboration focused on accelerating the development and deployment of autonomous driving technologies.

Toyota will test Waymo in a city it built near Mount Fuji. The "Woven City" is complete with streets and housing to prove Waymo's artificial intelligence.