Shares of AMD spiked on the news, while Nvidia was down in after-hours trading. 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.
According to commentators, the effort aligns with Tesla's push to be vertically integrated and cut reliance on other companies.
Further, according to a source told the CNBC, Tesla already received back samples of its processors of its first implementation and lately is running tests on it.
A more power-efficient purpose-built chip could help Tesla get closer to delivering totally autonomous driving.
According to tech website WCCFTech, the new AI chip could be AMD's next-generation Navi graphics architecture.
Spectacular Win By PV Sindhu
Trailing 4-8 in the second, Sindhu wiped off the deficit with a sixpoint burst and surged into lead at 13-11. Okuhara attempted to tire Sindhu again with the longest rally of the match lasting 56 shots.
Nvidia is down 2.81% at $180.68 a share on Thursday following reports that AMD is partnering with Tesla to develop a new chip for its self-driving cars technology. The chip is being manufactured by GlobalFoundries, and AMD spin-off, which has a wafer supply agreement in place with AMD through 2020.
A Tesla spokesperson declined to comment about the AMD collab when reached by Mashable via email, while a spokesperson on behalf of Global Foundries told us that Jha's comments about Tesla were "not reported accurately".
Last year, AMD lost what Tesla CEO Elon Musk called a tight race against Nvidia for the auto company's GPU/AI business. The company also stated that they do not comment on customers or potential customers' projects.
"A partnership between Tesla and AMD would make sense to us, given that former chief AMD MPU architect, Jim Keller (designer of AMD's current Zen architecture), left AMD to become Tesla's Head of Autopilot in early 2016", Lipacis wrote. 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.