Tesla is looking into custom AI chips

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Tesla is looking into developing custom microchips to power the AI for its autonomous driving systems, reports CNBC.

The automaker is reportedly working with AMD, a microchip designer and Intel’s primary rival in the PC space, on a new chip that would make Tesla less reliant on Nvidia for silicon to support its cars self-driving systems.

Tesla is looking to develop a more efficient chip for use in its autonomous-driving system that’s designed for that specific purpose. The automaker is also reportedly aiming to vertically integrate the manufacturing of parts for many of its systems to reduce reliance on suppliers and partners.

To that end, it has hired and promoted a number of people with semiconductor experience — and many specifically with knowledge of AMD’s architecture — within its Autopilot team.

This isn’t the first time that Tesla’s decided to move away from working with a partner in order to bring efforts in-house. Last year, for instance, it moved away from using Mobileye’s LiDAR and object-detection systems in favor of a radar-based system developed internally. But it’s not clear whether any newly developed chips would be required for full autonomy.

Tesla has claimed that, barring regulatory shifts or other developments beyond its control, vehicles that it’s produced since October 2016 are equipped with all the hardware they’ll need for fully autonomous driving. These internally developed chips may just be a measure to reduce costs while maintaining comparable computing capabilities as Tesla looks to ramp up production of its mid-range Model 3 sedan.

The self-driving car is no longer a futuristic fantasy. Consumers can already buy vehicles that, within a few years time, will get software updates enabling them to hit the road without the need for a driver.

This autonomous revolution will upend the automotive sector and disrupt huge swaths of the economy, while radically improving energy efficiency and changing the way people approach transport around the world.

Automakers and tech companies are racing to develop the technology that will power self-driving cars in the coming years. That tech is advancing, but leaves observers with a bigger question: will consumers trust driverless car tech, and will they want to use autonomous cars?

Peter Newman, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on self-driving cars that:

Sizes the current and future self-driving car market, forecasting shipments and projecting installed base.
Explains the current state of technology, regulation, and consumer perception.
Analyzes how the development of autonomous cars will impact employment and the economy.

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