diff --git a/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/install-nvidia b/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/install-nvidia
index 19d482b913..803934b190 100644
--- a/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/install-nvidia
+++ b/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/install-nvidia
@@ -2,17 +2,23 @@
 
 . /usr/share/coreos/release
 NVIDIA_DRIVER_BASENAME="$1"
-
-emerge-gitclone
-emerge -gKv coreos-sources > /dev/null
-cp "/usr/lib64/modules/$(ls /usr/lib64/modules)/build/.config" /usr/src/linux/
-make -C /usr/src/linux modules_prepare
+KERNEL_NAME="$(ls /lib/modules)"
 
 cd "/nvidia/${NVIDIA_DRIVER_BASENAME}"
 ./nvidia-installer -s -n \
   --no-check-for-alternate-installs \
   --no-kernel-module-source \
+  --kernel-name="${KERNEL_NAME}" \
   --no-opengl-files \
   --no-distro-scripts \
-  --kernel-install-path="${PWD}" \
+  --no-systemd \
+  --skip-depmod \
+  --kernel-install-path="${PWD}/install-mod" \
   --log-file-name="${PWD}/nvidia-installer.log" || true
+
+mkdir -p /lib/modules/${KERNEL_NAME}/video
+mkdir -p "${PWD}"/install-mod
+cp "${PWD}"/kernel/*.ko "${PWD}"/install-mod
+cp "${PWD}"/install-mod/*.ko /lib/modules/${KERNEL_NAME}/video/
+depmod -a
+cp /lib/modules/${KERNEL_NAME}/modules.* "${PWD}/install-mod/"
diff --git a/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/setup-nvidia b/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/setup-nvidia
index 49f74e6811..7e3a48546c 100644
--- a/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/setup-nvidia
+++ b/sdk_container/src/third_party/coreos-overlay/x11-drivers/nvidia-drivers/files/bin/setup-nvidia
@@ -4,12 +4,13 @@ set -euo pipefail
 . /usr/share/flatcar/release
 . /usr/share/flatcar/update.conf
 . /usr/share/flatcar/nvidia-metadata
+[ -f /etc/flatcar/nvidia-metadata ] && . /etc/flatcar/nvidia-metadata
 
 NVIDIA_DOWNLOAD_BASEURL="https://us.download.nvidia.com/${NVIDIA_PRODUCT_TYPE}/"
 NVIDIA_DRIVER_BASENAME="NVIDIA-Linux-x86_64-${NVIDIA_DRIVER_VERSION}"
 NVIDIA_WORKDIR='nvidia-workdir'
 
-FLATCAR_DEVELOPER_CONTAINER="flatcar_developer_container.bin"
+FLATCAR_DEVELOPER_CONTAINER="flatcar_developer_container-${FLATCAR_RELEASE_VERSION}.bin"
 FLATCAR_DEVELOPER_CONTAINER_URL=""
 FLATCAR_ROOT_WORKDIR="/opt/nvidia/workdir"
 FLATCAR_KERNEL_VERSION=$(uname -r)
@@ -21,15 +22,16 @@ function download_flatcar_developer_container() {
 
   if [[ ! -f "${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}" ]]
   then
-
+    rm -f "${FLATCAR_ROOT_WORKDIR}/"flatcar_developer_container*.bin
+    FLATCAR_REMOTE_FILENAME=${FLATCAR_DEVELOPER_CONTAINER%%-*}.bin.bz2
     if [[ "$GROUP" == "developer" ]]
     then
-      FLATCAR_DEVELOPER_CONTAINER_URL="https://bucket.release.flatcar-linux.net/flatcar-jenkins/developer/developer/boards/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
-    else if [[ "$(curl -I -s -o /dev/null -w "%{http_code}" "https://${GROUP}.release.flatcar-linux.net/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_DEVELOPER_CONTAINER}.bz2")" == 200 ]]
+      FLATCAR_DEVELOPER_CONTAINER_URL="https://bucket.release.flatcar-linux.net/flatcar-jenkins/developer/developer/boards/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_REMOTE_FILENAME}"
+    else if [[ "$(curl -I -s -o /dev/null -w "%{http_code}" "https://${GROUP}.release.flatcar-linux.net/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_REMOTE_FILENAME}")" == 200 ]]
       then
-        FLATCAR_DEVELOPER_CONTAINER_URL="https://${GROUP}.release.flatcar-linux.net/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
+        FLATCAR_DEVELOPER_CONTAINER_URL="https://${GROUP}.release.flatcar-linux.net/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_REMOTE_FILENAME}"
       else
-        FLATCAR_DEVELOPER_CONTAINER_URL="https://bucket.release.flatcar-linux.net/flatcar-jenkins/${GROUP}/boards/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
+        FLATCAR_DEVELOPER_CONTAINER_URL="https://bucket.release.flatcar-linux.net/flatcar-jenkins/${GROUP}/boards/${FLATCAR_RELEASE_BOARD}/${FLATCAR_RELEASE_VERSION}/${FLATCAR_REMOTE_FILENAME}"
       fi
     fi
 
@@ -39,7 +41,7 @@ function download_flatcar_developer_container() {
     fi
 
     curl -L --fail "${FLATCAR_DEVELOPER_CONTAINER_URL}" -o "${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
-    bzip2 -d "${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
+    lbzip2 -d "${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}.bz2"
 
   fi
 
@@ -61,25 +63,32 @@ function extract_nvidia_installer() {
 
   pushd "${FLATCAR_ROOT_WORKDIR}/${NVIDIA_WORKDIR}"
   chmod +x "${NVIDIA_DRIVER_BASENAME}.run"
-  "./${NVIDIA_DRIVER_BASENAME}.run" -x -s
+  "./${NVIDIA_DRIVER_BASENAME}.run" -x -s || true
   popd
 }
 
 function run_nspawn_container() {
   echo Spawn system-nspawn container to install the NVIDIA drivers
 
-  sudo systemd-nspawn --image="${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}" --bind="${FLATCAR_ROOT_WORKDIR}/${NVIDIA_WORKDIR}":/nvidia --bind=/usr/share/oem/bin:/app/bin/ /app/bin/install-nvidia "$NVIDIA_DRIVER_BASENAME"
+  sudo systemd-nspawn --read-only --volatile=overlay --image="${FLATCAR_ROOT_WORKDIR}/${FLATCAR_DEVELOPER_CONTAINER}" --bind="${FLATCAR_ROOT_WORKDIR}/${NVIDIA_WORKDIR}":/nvidia --bind=/usr/share/oem/bin:/app/bin/ /app/bin/install-nvidia "$NVIDIA_DRIVER_BASENAME"
 }
 
 function copy_nvidia_build_artifacts() {
-  mkdir -p "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/lib64"
-  cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/*.so.* "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/lib64/"
+  mkdir -p "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib64"
+  cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/*.so.* "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib64/"
 
   mkdir -p /opt/bin
   cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/{nvidia-debugdump,nvidia-cuda-mps-control,nvidia-xconfig,nvidia-modprobe,nvidia-smi,nvidia-cuda-mps-server,nvidia-persistenced,nvidia-settings} /opt/bin/
 
-  mkdir -p "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/lib64/modules/$(uname -r)/video/"
-  cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/kernel/*.ko "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/lib64/modules/$(uname -r)/video/"
+  mkdir -p "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib/modules/$(uname -r)/video/"
+  cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/install-mod/*.ko "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib/modules/$(uname -r)/video/"
+  cp "$FLATCAR_ROOT_WORKDIR/$NVIDIA_WORKDIR/${NVIDIA_DRIVER_BASENAME}"/install-mod/modules.* "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib/modules/$(uname -r)/"
+
+  mkdir -p "/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib/extension-release.d/"
+  cat <<EOF >"/opt/nvidia/${NVIDIA_FLATCAR_VERSION_PAIR}/usr/lib/extension-release.d/extension-release.nvidia-driver"
+ID=flatcar
+SYSEXT_LEVEL=1.0
+EOF
 
   pushd /opt/nvidia
   ln -sfn "${NVIDIA_FLATCAR_VERSION_PAIR}" current
@@ -87,30 +96,57 @@ function copy_nvidia_build_artifacts() {
 }
 
 function install_and_load() {
-  insmod "/opt/nvidia/${NVIDIA_CURRENT_INSTALLATION}/lib64/modules/$(uname -r)/video/nvidia.ko"
+  # This creates symlinks to sonames
+  mkdir -p /etc/ld.so.conf.d/
+  echo "/opt/nvidia/${NVIDIA_CURRENT_INSTALLATION}/usr/lib64" > /etc/ld.so.conf.d/nvidia.conf
+  ldconfig
 
-  if [ ! -f /dev/nvidiactl ]
+  modprobe -a i2c_core ipmi_msghandler ipmi_devintf
+
+  pushd "/opt/nvidia/${NVIDIA_CURRENT_INSTALLATION}/usr/lib/modules/$(uname -r)/video/"
+  insmod nvidia.ko
+  insmod nvidia-modeset.ko
+  insmod nvidia-uvm.ko
+  popd
+
+  # based on https://docs.nvidia.com/cuda/cuda-installation-guide-linux/index.html#runfile-verifications
+  if [ ! -c /dev/nvidiactl ]
   then
     mknod -m 666 /dev/nvidiactl c 195 255
   fi
 
-  if [ ! -f /dev/nvidia0 ]
+  if [ ! -c /dev/nvidia0 ]
   then
-    mknod -m 666 /dev/nvidia0 c 195 0
+    NVDEVS=`lspci | grep -i NVIDIA`
+    N3D=`echo "$NVDEVS" | grep -c "3D controller" || true`
+    NVGA=`echo "$NVDEVS" | grep -c "VGA compatible controller" || true`
+    N=$(( $N3D + $NVGA - 1))
+    for i in `seq 0 $N`; do
+      mknod -m 666 /dev/nvidia$i c 195 $i
+    done
   fi
 
-  mkdir -p /etc/ld.so.conf.d/
-  echo "/opt/nvidia/${NVIDIA_CURRENT_INSTALLATION}/lib64" > /etc/ld.so.conf.d/nvidia.conf
-  ldconfig
+  if [ ! -c /dev/nvidia-uvm ]
+  then
+    D=`grep nvidia-uvm /proc/devices | awk '{print $1}'`
+    mknod -m 666 /dev/nvidia-uvm c $D 0
+  fi
 }
 
 function verify_installation() {
   nvidia-smi
-  nvidia-modprobe -u -m -c 0
+  nvidia-modprobe -u -m -c 0 || echo "nvidia-modprobe failed!"
+}
+
+function is_nvidia_probe_required() {
+  if [[ -z "$(lspci | grep -i "${NVIDIA_PRODUCT_TYPE}")" ]]; then
+    return 1
+  fi
+  return 0
 }
 
 function is_nvidia_installation_required() {
-  if [[ -z "$(lspci | grep -i "${NVIDIA_PRODUCT_TYPE}")" ]]; then
+  if ! is_nvidia_probe_required; then
     return 1
   fi
 
@@ -140,3 +176,8 @@ then
   setup "$@"
   exit 0
 fi
+if is_nvidia_probe_required
+then
+  install_and_load
+  verify_installation
+fi