Tesla May Be Developing a Computer Chip With AMD For Self-Driving Cars

September 21, 2017, 12:39 AM UTC

Tesla and AMD may be teaming up on a new computer chip to power self-driving cars.

The Elon Musk-led electric automobile company is working with AMD on a custom chip that could be used in future Tesla cars, according to a CNBC report on Wednesday.

The CNBC report, citing an unnamed source, said Tesla (TSLA) is using AMD’s (AMD) intellectual property to develop its own custom chip. Tesla is currently testing an early version of the processor, the source said.

The custom chip would presumably handle artificial intelligence-related tasks, like the ability for cars to “see” objects and drive themselves. Jim Keller, Tesla’s head of autopilot technology and a former AMD engineer, is leading the project.

Fortune contacted Tesla and AMD for comment and will update this story if they respond.

Several big technology companies like Apple (AAPL) and Google (GOOG) have recently developed custom computer chips tailored for various AI-related tasks.

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Tesla shares were mostly flat on Wednesday. Meanwhile, AMD’s shares jumped 6.40% to $14.62 in after-hours trading, on top of a 4.7% gain in regular trading.

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