Tesla, AMD & the AI chip that could soon be controlling your vehicle

Electric carmaker Tesla Inc is working with AMD to develop its own artificial intelligence chip for self-driving cars CNBC reported on Wednesday citing a source familiar with the matter

Tesla is apparently working with computing manufacturer AMD to create its own chip to handle autonomous driving for its range of electric vehicles.

Furthermore, Tesla has already receivedback samples of the first implementation of its processor and is now running tests on it, a source told CNBC.

AMD shares has risen 4.7% in after hours trading from the news, but it makes me question something even more: will Tesla increase its investment into AMD even more?

Global Foundries CEO Sanjay Jha reportedly said that Tesla was working directly with fabricators, and GlobalFoundries has a wafer supply agreement with AMD until 2020. Neither AMD nor Tesla has commented upon this story either, so far.

The effort to build its own chip is in line with Tesla's push to be vertically integrated and decrease reliance on other companies.

Tesla now uses NVIDIA chips for its limited self-driving functionality. Once the initial round of testing is complete, TSLA will likely provide feedback to AMD, which will then make the necessary adjustments.

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.

Tesla's autopilot business is run by Jim Keller, who previously spent much of his career at AMD, and then at Apple, where he helped design the Apple A4 and A5 in-house processors.

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