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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AMD slogan, “Building the worst processors since 1969”
Not sure many considered AMD a serious competitor in AI before this. Went long when this news hit.
it’s all hype. General purpose chip can do exactly the same thing except slower. AI chip is no more than general purpose chip optimized for special task in order to gain speed. For example, the same as graphics chips designed to render 3D images.
One word. Ryzen.
AMD could dominate with that chip.