The obsession of Tesla to develop in-house components now extends to AI chips. A source says that Tesla is now working with the AMD for reining its new chip that will most probably reduce its reliability on Nvidia. Tesla bags over 50 employees those who are involved in this project, including Jim Killer, the chip star. Tesla is flipping its hand around the custom silicon for its software on self-driving, in accommodation with AMD, on Wednesday CNBC reported. A source told to CNBC that the car-maker has gained back samples regarding the first implementation of its processor and is undergoing tests on it. On Wednesday, AMD shares shoot up over six percent after their partnership news leaked. After going through a nasty breakup with the Mobileye, which is a major supplier of self-driving software and hardware, Tesla has been keeping up with its own capabilities on in-house hardware over a year ago. Mobileye was the supplier of first-generation Autopilot technology of Tesla, but later the two of these gone on their separate paths after the death of the Tesla customer in a crash, which happened while the Autopilot was active.

Whilst Tesla happens to be a significant customer to Nvidia, Nvidia also extols partnerships with several other car companies, including Audi, BMW, Toyota, and Mercedes Benz. Today on an earnings call, he CEO of Tesla Elon Musk states that they have been working in the semi-stealth mode for almost 2-3 years now on this typically, and thus now he thinks it’s time reveal the actual secret. Musk stated to a room of AI experts from companies like; Uber and Alphabet that they are into building customized AI hardware chips, amid the leading AI conference of the world.

Tesla after having its silicone can build for its self-needs at its own pace. Somewhere if they abruptly go through that hardware is lacking they are not waiting to rely on someone else to build it. Musk even stated that this is costing them the same as the latest hardware, and it could turn out to be a key strength.