Rivian Automotive (RIVN) revealed a new custom chip and artificial intelligence models to expand its autonomous driving ambitions at the company’s Autonomy and AI Day in Palo Alto, California.
At the event, the EV manufacturer also said it plans to offer an Autonomy+ subscription providing hands-free driving for an upfront purchase of $2,500 or $49.99 per month, a more competitive offering compared to Tesla’s (TSLA) $99 per month subscription.
New models will come equipped with lidar sensors, Rivian’s new custom chip (which will replace Nvidia and Qualcomm chips), and an “autonomy computer” to allow for Level 4 self-driving capabilities, underscoring the company’s robotaxi ambitions.
SAE Level 4, or high automation driving, is defined as one in which the car can handle all driving tasks within specific conditions without human intervention, though not considered “full self-driving.”
By comparison, Tesla (TSLA) vehicles are SAE Level 2, requiring driver supervision and readiness to take over.
Rivian (RIVN) shares are down more than 3% but are off their session lows as a result of the recent development.