Now there is speculation that Tesla will not be relying on Nvidia anymore as the electric auto manufacturer is aiming to move its chip development in-house.
Electric carmaker Tesla Inc is working with Advanced Micro Devices Inc to develop its own artificial intelligence chip for self-driving cars, CNBC reported on Wednesday, citing a source familiar with the matter.
The company is reportedly building its chip on top of AMD technology and is even working with AMD spin-off and chip fabricator GlobalFoundries to make its vision a reality.
AMD shares closed up 62 cents, or nearly 5%, at $13.74, following CNBC's headline, and are up another 87 cents, over 6%, at $14.62, in late trading. Neither AMD nor Tesla has commented upon this story either, so far.
If tests prove successful it would mean Tesla would have greater vertical integration, with its own tech in the AI processor, rather than being so reliant upon Nvidia GPUs. CNBC sources say that Tesla has over 50 employees working on the project with AMD.
Tesla, for a long time, has been relying on Nvidia for powering its self-driving cars. Company chief Elon Musk once said that Tesla aims to have fully autonomous cars by 2019 - we'll just have to wait and see if it can stick to that timeline.
Interestingly, Tesla's head of AI, Jim Keller, is an ex-AMD CPU ar- chitect having designed Zen (used in Ryzen and EPYC), and has surrounded himself at Tesla with several key AMD players, which may have been the initial reason Tesla is aligning themselves with AMD.