This article first appeared on GuruFocus.
Rivian Automotive, Inc. (RIVN, Financials) rolled out a custom artificial intelligence chip and new autonomous driving models during its Autonomy and AI Day in Palo Alto, marking one of its biggest steps yet toward developing in-house self-driving capabilities.
The firm stated that the chip would power its new Autonomy+ system, which is meant to handle more of the processing power required for higher-level automated functions and enhanced driver support. Rivian wants to enhance performance, rely less on outside suppliers, and have more long-term control over how its software and hardware work together by making its own silicon.
Rivian’s decision to switch to bespoke chips puts it in line with other electric vehicle companies who have done the same as self-driving technologies become increasingly important to the product experience. The business didn’t say when the new platform will be available, but they did say that it would help shape the development of future vehicles and provide the basis for more sophisticated driving features.
Rivian’s next earnings report will provide investors information on things like how production would be affected and how fast Autonomy+ might be available on all of its vehicles.