Tesla and AMD have reportedly entered the final testing phase of their first jointly developed autopilot chip, with full self-driving capabilities expected by 2019. Although neither company has officially confirmed the collaboration, signs suggest that AMD's involvement could reduce Tesla's reliance on Nvidia, a move that aligns with Tesla’s strategic goals. This shift signals a growing desire for autonomy in AI chip development, as Tesla continues to explore alternative partnerships.
In addition, it has been reported that Tesla may no longer use Nvidia’s chips for its in-vehicle entertainment systems, instead turning to Intel. While this news remains unconfirmed, it highlights an increasingly strained relationship between Tesla and Nvidia. Analysts warn that if Tesla moves away from Nvidia, it could result in significant financial losses for the chipmaker next year.
The recent developments have likely left Nvidia’s founder and CEO, Jensen Huang, feeling uncertain. Tesla’s pattern of switching partners—such as its previous split with Mobileye and later partnership with Nvidia—has shown a clear trend of seeking independence. Despite these shifts, Tesla has always maintained a focus on developing its own AI chips, aiming to reduce external dependencies and control key technologies.
Nvidia, while a leader in AI chip manufacturing, faces challenges in the automotive sector due to its limited experience in car production. However, the company has made significant strides in autonomous driving through its Tegra series and the DrivePX2 and Xavier platforms. These innovations have helped Nvidia regain a strong foothold in the industry, with major automakers like Bosch and ZF now using its technology.
Despite Tesla’s potential shift, Nvidia remains a dominant force in general-purpose GPUs and continues to partner with numerous car manufacturers. Its technological edge and long-standing relationships make it a tough competitor in the evolving AI chip market.
On the other hand, Tesla is building a formidable team in AI chip development. Jim Keller, a renowned chip architect who previously worked at AMD and Apple, now leads Tesla’s autonomous driving hardware and software efforts. His team includes top talent from Apple, AMD, and other leading tech companies, reinforcing the idea that Tesla is deeply invested in chip innovation.
The pressure on Tesla to deliver safe and reliable self-driving technology is immense. The fatal accident involving a Tesla using Autopilot last year raised concerns about the safety of its system, even though investigations suggested the driver was at fault. To maintain public trust and stay ahead of competitors like Google’s Waymo, Apple, Uber, and Baidu, Tesla needs to continue pushing the boundaries of AI and chip development.
As the race for full autonomy intensifies, Tesla’s decision to develop its own chips reflects a broader industry trend: control over core technology is becoming more critical than ever. With its strong engineering team and strategic partnerships, Tesla is positioning itself as a major player in the future of autonomous driving.
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