Microsoft got a lot of flack for the telemetry features in Windows 10 and now NVIDIA has some explaining to do about the purpose of this undocumented process. At the moment, there's not a lot of certainty about the goal of this telemetry service, it seems to capture data on an hourly basis and once a day it transmits a report to what is believed to be a NVIDIA server. Some believe it's little more than a crash report monitor, hopefully NVIDIA will clarify the situation soon.
In the meantime, if you want to disable the NVIDIA GeForce telemetry service you can do this by running the Microsoft Autoruns tool, a guide can be found at Majorgeeks. Specifically, you need to disable "NvTmMon", "NvTmRep" and "NvTmRepOnLogon".