Content originally published at iBankCoin.com
Shares of AMD ($AMD) spiked over 6 percent in after hours trade following a CNBC report that carmaker Tesla has teamed up with the chip maker develop a custom A.I. processor for self-driving technology.
The carmaker has received the first batch of samples from the chipmaker, a source told CNBC.
The new relationship with AMD likely signals a shift away from Nvidia, which is currently providing a small processing chip for Tesla’s current version of their self-driving system.
Via CNBC:
Current Tesla vehicles use Nvidia graphics processing units as part of the Autopilot self-driving hardware. Previously Tesla used chips from Mobileye, but the two companies parted ways last year after an accident involving a Mobileye-powered Tesla. Earlier this year Intel acquired Mobileye for more than $15 billion.
Notably Tesla is not working with Intel, which has enjoyed a long working relationship with Alphabet’s Waymo car group.
Shares of Nvidia ($NVDA) dropped after hours;
CNBC also reports that “Alphabet has already built two generations of an AI chip that can work as a GPU alternative. Microsoft is working on its own AI chip for the HoloLens. And Apple has incorporated an AI chip into its top-of-the-line iPhone X.”
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