Tesla abandoned Nvidia? Developing a chip with Nvidia's rival AMD

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In extending trade the shares of AMD were up to 2.2%. He views the new chip as a move to address specific computing tasks for the vehicle while an Nvidia chip would still handle general goal computing.

CNBC reported Tesla has received samples of the processor chip and is now running tests on it, according to sources.

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According to tech website WCCFTech, the new AI chip could be AMD's next-generation Navi graphics architecture. "GlobalFoundries, which fabricates chips, has a wafer supply agreement in place with AMD through 2020".

Yesterday, Sanjay Jha, CEO of AMD spin-off and chip fabricator GlobalFoundries, at the company's technology conference in Santa Clara, California, mentioned Tesla as an example of companies that were working with fabricators.

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Tesla CEO Elon Musk has said it has been a "tough slog" transitioning from the reliance on Mobileye's vision chips.

Rosenblatt Securities chip analyst Hans Mosesmann this evening published a note to clients regarding the report this afternoon from CNBC stating that Tesla Motors (TSLA) is using technology from Advanced Micro Devices (AMD) to make a special "A.I." chip for self-driving, which Mosesmann views as a "game changer".

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Mark Lipacis, an analyst at Jefferies, thinks the Tesla partnership is a "critical win" for AMD, but that it's only the first step for the company if it really wants take on Nvidia. As it seems now, they have partnered up with AMD to do so. Tesla's silicon project is bounding ahead under the leadership of longtime chip architect Jim Keller, the head of Autopilot hardware and software since the departure of Apple veteran Chris Lattner in June. Since Keller's hiring, Tesla has also brought on other big talents from AMD like director Ganesh Venkataramanan, Bill McGee, a principal hardware engineer, and Dan Bailey, a system circuit design lead.