Tesla to develop its own chip for self-driving cars

by Frankie Norman September 22, 2017, 0:17
Tesla to develop its own chip for self-driving cars

AMD and Tesla are working together to achieve self-driving cars, according to CNBC.

The project is being carried out by Jim Keller, chip architect and head of the autopilot software and hardware of Tesla. According to Steves, there is plenty of Tesla business for both Nvidia and AMD, and the AMD news is just noise for Nvidia (see his track record here).

Tesla is looking to develop their own chips that are custom made to their AI needs, and provide energy efficiency while tackling specifically the problems of self-driving.

The electric vehicle company Tesla has worked with Nvidia for a long time.

This allows the electric auto company to "create a technology that can do precisely what it wants to achieve", the website says, such as "true autonomous driving". After reports emerged of the two collaborating on self-driving technology, AMD's share price shot up almost 5 percent and continued its ascension in after hours trading.

While Tesla now partners with Nvidia for computing needs within their cars, this deal involves Elon Musk's company relying heavily on tech that's designed by external sources, and it's natural and logical for Tesla to prefer a little less reliance on factors that are beyond their control when building their self-driving machines. He said that the Tesla partnership will likely only impact AMD's earnings by $0.02-0.03 in 2018.

Tesla announced in October 2016 that all new cars in production were being fitted with a new and different suite of sensors for the Autopilot system and other functions, dubbed Hardware 2.0.

AMD shares are up 1.89% premarket.

Tesla might soon have a new AI chip built specifically for its cars to bring the Autopilot system to full-on self-driving status, and it's probably getting help. Based on 25 analysts polled by TipRanks in the last 3 months, 15 rate a Buy on Nvidia stock, 7 maintain a Hold, while 3 issue a Sell on the stock.

Mosesmann maintained a buy rating on AMD and price target of 22.

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