Rivian Develops In-House Autonomy Chip for 2026
Rivian (NASDAQ: RIVN) announced plans to integrate a custom-designed autonomy chip into its R2 vehicles, aiming for rollout by the end of 2026, during its inaugural Autonomy & AI Day. The chip, capable of processing 1600 sparse TOPS for real-time predictions, underscores a growing trend of companies developing in-house AI solutions to reduce reliance on Nvidia (NASDAQ: NVDA). Rivian’s initiative is particularly notable as it pursues level 4 self-driving capabilities.
In contrast, Nvidia reported a fiscal third-quarter revenue of $57 billion, with its data center revenue reaching $51.2 billion, a 66% increase year-over-year. Rivian, with a much smaller revenue of approximately $1.6 billion for the same quarter, highlights the competitive dynamic in AI technology, as more firms, including Amazon and Alphabet, explore custom chip solutions to mitigate costs. Investors are cautioning that as alternatives to Nvidia’s products become more prevalent, the chipmaker may face pressures on growth and margins moving forward.
