//php echo do_shortcode(‘[responsivevoice_button voice=”US English Male” buttontext=”Listen to Post”]’) ?>
EV maker Rivian last week announced that it will replace Nvidia silicon with its own AI chip, which other automakers like Volkswagen may also adopt, according to analysts who spoke to EE Times.
At its inaugural Autonomy & AI Day on Dec. 11, Rivian unveiled a first: the Rivian Autonomy Processor (RAP1). Previous Rivian vehicles ran Nvidia’s Drive Orin processors to support driver-assistance features, but the carmaker said the transition to its own chips has started.
“Our updated hardware platform, which includes our in-house 1,600 sparse TOPS inference chip, will enable us to achieve dramatic progress in self-driving to ultimately deliver on our goal of delivering L4,” said Rivian CEO R.J. Scaringe in a press release. “This represents an inflection point for the ownership experience—ultimately being able to give customers their time back when in the car.”
Level 4 (L4) autonomy means a vehicle can drive itself within certain conditions or places like urban areas that are geofenced by cellular towers, without human intervention needed.
By Infineon Technologies 12.15.2025
By POWERQUARK 12.12.2025
By EETimes Staff 12.12.2025
The RAP1 is a 5-nm processor made at TSMC that combines logic and memory on a single multi-chip module. Rivian said the architecture delivers advanced levels of efficiency and performance, pushing innovations like electric powertrains, lightweight materials, aerodynamics and AI-driven ADAS.
RAP1 powers the company’s third-generation Autonomy computer, the ACM3, rated at 1,600 sparse INT8 TOPS. The chip features RivLink, a low-latency interconnect technology allowing connection of multiple chips.
Rivian plans to integrate LiDAR into future models, expanding the company’s multi-modal sensor strategy, providing 3D spatial data and redundant sensing while improving real-time detection.
ACM3 and LiDAR are undergoing validation and will ship in new car models by the end of 2026, according to the company.
“Rivian’s next generation of in-house autonomy hardware exemplifies the benefits of a vertically-integrated system that gives our engineering teams more velocity than ever before, higher performance and power and meaningful cost savings,” Rivian electrical hardware SVP Vidya Rajagopalan said.
Rivian-Volkswagen partnership
Rivian’s $5.8 billion joint venture with Volkswagen, formed in late 2024, may give the Rivian RAP1 an entry point into the world’s top-three automaker, according to analysts.
“It remains to be seen whether this chip can unlock growth, but Rivian’s partnership with VW could become highly relevant if some VW vehicles were to adopt this chip,” Yole tech analyst Hugo Antoine told EE Times. “VW has recently done this in China through a partnership with Horizon Robotics, so why not in the U.S.?”
The joint venture, Rivian and Volkswagen Group Technologies, aims to develop next-generation software-defined vehicle architecture, operating systems and zonal computing for future EVs from both companies and potentially other OEMs. The plan is to combine Rivian’s tech with VW’s scale. The collaboration provides Rivian with significant investment while Volkswagen gains software expertise for EV development.
For advanced chips made at the 5-nm node, the cost breakeven for in-house development is about 3 million chips over the product lifetime, Antoine said. Only one carmaker has crossed that breakeven threshold, he noted.
“To date, Tesla remains the only OEM to have successfully integrated its own ADAS chips at scale,” Antoine said. “However, this trend has clearly accelerated in 2024–2025, especially in China with players such as Nio, Xpeng and Li Auto.”
Carmakers and chip designers are aiming for a piece of the silicon business that, up to now, has been dominated by Nvidia and Tesla.
“The industry is already split on this, with Tesla being (as has often been the case) a very early mover,” TechInsights automotive practice VP Ian Riches told EE Times. “Chinese OEMs like Nio and XPeng are also moving to in-house designs, reducing dependence on suppliers. However, even in China, many OEMs are looking to providers such as Horizon Robotics and Huawei rather than in-house. There may be one or two others who choose to go their own way, but most major OEMs still seem to be looking for partnerships, not in-house development.”
Beyond Nvidia, other fabless players should not be overlooked: Mobileye, Horizon Robotics, Huawei and more recently Qualcomm offer very strong and sometimes highly competitive solutions in the central ADAS processor segment, Antoine said.
Yole expects the central ADAS processor market, including Tesla self-driving chips and Nvidia processors, to soar from $1.5 billion in 2025 to $8.4 billion by 2030.
TOPS figures
The DRIVE AGX Orin delivers up to 254 INT8 TOPS per chip, and most automotive implementations use dual-Orin configurations, meaning around 500 TOPS total, Riches said.
“On paper, Rivian’s 1,600 sparse TOPS represents a substantial leap, though the ‘sparse’ qualifier means this isn’t a direct apples-to-apples comparison with dense TOPS figures,” Riches added. “Rivian themselves are claiming a four-times performance boost over its current Nvidia solution.”
For several years, ADAS processors have become more centralized, and OEMs have taken a stab at designing their own processors.
“These two trends are fundamental and closely linked,” Antoine said. “Central processors such as Nvidia Orin/Thor are expensive, but they are essential to reach L2++/L3 ADAS and beyond. Rivian justifies the development of its RAP1 chip as a way to speed up innovation, improve performance, and reduce costs, notably by lowering processor procurement costs. I have no doubt about the first two points; cost reduction, however, is where Rivian’s bet is more risky and challenging. Rivian is currently facing a growth ceiling.”
In the U.S., where Rivian is based, the EV business is still growing in sales volume, but the pace of growth has slowed from previous years, with increased competition, shifting consumer preferences and policy changes creating a maturing market where some brands thrive while others struggle, according to the International Energy Agency. Worldwide, the EV business is still growing, with sales expected to grow by nearly 20% from last year to about 20 million in 2025.
