Many, especially Europeans, hope that robocars will best tested and certified by government or 3rd party labs, not by the people building them. That's the way things used to be but it's not an approach that is likely to work well for the hard problem of making sure robocars are safe.
Nvidia simulator puts a giant screen in front of the car, both for the cameras to see, and for humans to see if testing human/computer driving handoffsThere are two rough schools for certifying safety in cars. In the USA, self-certification is popular. A safety standard is published, and vendors declare that they have met it. If a problem arises, and it turns out they lied, they face extra legal liability.
Advocates of both methods think the other approach is crazy. This is especially true when it comes to robocars, which don't follow many of the old rules. The point is, however, that even after all that testing -- thousands of time more testing than would be done in any certification lab -- Waymo is not yet convinced they are ready, though they feel they are close. Thousands of times more testing.
The only way to truly test is to try the vehicle on situations it has never seen before, situations that are hard to handle. Once a situation is used in a test, vendors will know about it and put it in their own suites of tests. This means that a certifier has to constantly be coming up with large numbers of new, meaningful and realistic tests on a regular basis.
This is useful, but it's much, much faster to do post-perception simulation. In this approach, you don't create the visible virtual world, but you do create the underlying representation of it. The simulator knows where all the things in the world are, at an abstract level, but does not render them just to have the software try to understand them.
"Vehicle in the loop" where a real car is placed on rollers so it can spin its wheels, in a big warehouse where robots dressed up to look like cars and pedestrians move around it, in the same relative ways they would in reality. Ideally, real sensors are used, though it may be necessary to fake radar and LIDAR. For cameras, you may point the cameras at a fixed screen.
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