TLDR
- Rivian unveiled a custom self-driving chip and AI system at its first Autonomy and AI Day in Palo Alto on Thursday
- The company will launch Autonomy+ subscription in early 2026 for $2,500 upfront or $49.99 monthly with hands-free driving on over 3.5 million miles of North American roads
- Rivian plans to use lidar and radar sensors to achieve Level 4 autonomy and pursue robotaxi opportunities
- The new Rivian Autonomy Processor replaces Nvidia chips and features 205 gigabytes per second bandwidth
- Rivian stock is up 25% this year but still down over 80% since its 2021 IPO
Rivian threw down the gauntlet Thursday. The electric vehicle maker unveiled plans for self-driving technology that could put it in direct competition with Tesla and Waymo.
At its first Autonomy and AI Day in Palo Alto, California, Rivian showed off a custom-built chip. The company also announced pricing for its upcoming driver-assistance system.
The Rivian Autonomy Processor marks a shift away from Nvidia chips. Vidya Rajagopalan, Rivian’s vice president of electrical hardware, said the chip uses multi-chip module packaging with 205 gigabytes per second bandwidth.
That bandwidth matters for AI applications. The chip will power Rivian’s autonomous driving ambitions starting in 2026.
Rivian will launch its Autonomy+ subscription in early 2026. Customers can pay $2,500 upfront or $49.99 monthly.
That’s cheaper than Tesla’s FSD offering. Tesla charges $8,000 upfront or $99 per month for its supervised full self-driving system.
A near-future software update will bring Universal Hands-Free capability. This will allow hands-free driving on over 3.5 million miles of roads across North America.
Different Path to Self-Driving
Rivian is taking a different approach than Tesla. The company will use lidar and radar sensors in its vehicles.
Tesla relies primarily on cameras for its self-driving system. CEO Elon Musk has called lidar a “fool’s errand.”
Rivian aims for Level 4 autonomy. At this level, a passenger can sleep while the car drives itself in normal conditions.
Waymo vehicles currently operate at Level 4. The Alphabet-owned company runs robotaxi services in several U.S. cities.
CEO RJ Scaringe said the technology opens doors beyond personal vehicles. “This also enables us to pursue opportunities in the rideshare space,” Scaringe told attendees Thursday.
The robotaxi market has proven tricky. Tesla has promised robotaxis for years but hasn’t launched a service.
Rivian isn’t alone in chasing autonomous driving. General Motors and Honda are developing their own systems.
Lucid partnered with Nuro. Nissan teamed up with Wayve. Each company is betting on different technical approaches.
Pressure to Perform
Rivian faces mounting pressure from investors. The company needs to prove it can grow its customer base.
Battery electric vehicle sales have slowed in the U.S. The Trump administration ended a $7,500 federal tax credit in September.
That early end hurt EV sales across the industry. Chinese EV makers are also ramping up international competition.
Rivian shares are up 25% this year. But the stock remains down over 80% from its 2021 IPO price.
The company has faced internal and external challenges since going public. Thursday’s announcements represent a bet on technology to drive future revenue.
The Large Driving Model will underpin Rivian’s autonomous efforts. The AI model trains on real and simulated driving data.
The company said the Autonomy Processor will boost vehicles’ ability to process sensor data. This includes cameras, lidar and radar inputs.
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