Tesla Inc (TSLA) Partners With AMD On Self-Driving Processor

Joanna Estrada
September 22, 2017

Tesla has made no secret of the fact that it wants to put fully autonomous cars on roads in the next few years.

Shares of AMD (AMD) surged Wednesday following a report that it's working with Tesla (TSLA) on developing chips for autonomous driving, delivering a potential blow to Nvidia (NVDA).

The report stated that Tesla has received samples of the processor and is now running tests on it.

This deal is big for multiple reasons: Tesla now secures all of its GPUs from NVIDIA for self-driving cars, which I'm sure this deal will change that. Tesla has an existing relationship with Nvidia, whose GPUs power its Autopilot system, but this new in-house chip reported by CNBC could potentially reduce its reliance on third-party AI processing hardware. In a subsequent statement GlobalFoundries denied that Jha had confirmed that the company was working directly with Tesla, and that it doesn't comment on customers or potential customers. Previously, it worked with Israel-based Mobileye, which was subsequently acquired by Intel. The desire to build its own chip is said to be aligned with Tesla's wish to be more vertically integrated and less reliant on other companies. Tesla is investing in not only the chipmaker's expertise but also its personnel, contributing a team composed of AMD veterans including a chip architect, principal hardware engineer and system circuit designer. Keller is reportedly heading a team of over 50 people.

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