Tesla Is Allegedly Partnering With AMD to Build Its Own Autonomous Chips

Tesla Is Allegedly Partnering With AMD to Build Its Own Autonomous Chips

According to a source familiar with the matter, Tesla has already received its first batch of samples and has already begun doing test runs.

On Wednesday, Sanjay Jha, CEO of AMD spin-off, GlobalFoundries, said at company's conference and mentioned Tesla as one of the companies it was working with fabricators, but did not state that Tesla was a consumer.

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".

With a more powerful AI processor chip, this can potentially get Tesla models to boost its range as well as efficiently drive itself.

For those who are not aware, GlobalFoundries is the chip fabricator of AMD and has an existing agreement until 2020.

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The CNBC report said that its sources tied AMD and Tesla together, but neither AMD or Tesla will comment on the situation.

Shares of AMD spiked on the news, while Nvidia was down in after-hours trading. However, a statement released by GlobalFoundries denied that they are working directly with Tesla.

Elon Musk, CEO of Tesla, said that transitioning from the reliance was a "tough slog" on the vision chip of Mobileye. Keller previously worked at AMD and Apple, particularly on the latter's A4 and A5 chips. Chris Lattner, Tesla's vice president of Autopilot software, left the company in June after just six months at the helm. Tesla has brought on several AMD veterans after hiring Keller, including director Ganesh Venkataramanan, principal hardware engineer Bill McGee and system circuit design lead Dan Bailey.

Tesla is known for its aspirations to vertically integrate its business as much as possible, and its partnership with AMD could be a move toward that goal.