The development of the Rivian custom chip ensures less dependence on Nvidia and savings for future Rivian customers. This could be huge for Rivian.
Anytime an automaker can produce something by itself, it’s a net positive all the way around. Imagine what the impact of COVID-19 would have been if automakers had their own semiconductor plants instead of relying on third-party vendors to fill orders. That’s essentially what Rivian is doing with the new custom chip that allows it to reduce its dependence on Nvidia. This new AI chip allows Rivian to control its pathway through AI integration and autonomous driving.
The Rivian custom chip has the tech and automotive worlds buzzing
Rivian just unveiled the RAP1 autonomy processor chip, walking away from Nvidia processors to build its own autonomy platform. The move saves hundreds per vehicle while positioning the EV maker as an AI stock, not just another automaker. With the R2 launching late 2026 and subscription revenue on deck, Wall Street’s pricing in software margins and robotaxi potential won’t pay off for years. Here’s what the custom chip strategy actually delivers and why analysts bumped price targets despite execution risks.
How did Rivian announce this new chip technology
The announcement of the Rivian custom chip was made at the first “Autonomy & AI Day” for the company, held in Palo Alto, California. This will begin the movement away from Nvidia dependence and toward vertical integration of new automotive technology. Electric vehicle AI technology is becoming much more advanced and important than ever before, with Rivian fighting vs. Tesla for autonomy on the roadways. Future Rivian vehicles will likely include autonomous driving subscription pricing, allowing drivers to choose whether or not to pay for this feature and the technology it brings to roadways.
The new Rivian custom chip will be part of Rivian R2 specifications
The new RAP1 chip is a silicon and software architecture that will power the next generation of driver assistance and autonomous capabilities in the upcoming R2. That will only be the beginning of how this new chip and its technology are used. It signals a shift in the EV industry toward increased vertical integration of hardware and software across vehicles and other mobility solutions. Many automakers, including Rivian, expect autonomous driving technologies and systems to progress to allow self-driving cars in the near future, and they want to be ready for this change.
Additional changes that could put Rivian ahead
Not only will R2 drivers enjoy the benefits of the new RAP1 system, but the vehicle itself should have additional features and tech to bring it closer to being an autonomous vehicle. The company will also include lidar sensors to go alongside the cameras and radar systems in future models. This allows Rivian vehicles to have a multimodal sensor strategy, which should improve object detection and redundancy of the systems.
A new package of autonomy software is also being introduced, but it might not be ready for the R2 launch next year. This new module is called the “Large Driving Model,” and it’s a neural network trained on real and simulated driving data. This system should be integrated across future models to improve the perception and planning when self-driving systems are engaged.
This change should improve Rivian stock predictions for 2026
Investors concerned about some of the changes at Rivian should hold on and see what the R2 and R3 platforms bring for the company. Both of these new platforms are built to be smaller, more affordable, and should increase the volume of production by Rivian. Additionally, if the Rivian view of autonomy is accurate, they might have solved the puzzle. The view of an end-to-end computing effort using sensors, models, and software that are all developed together makes a lot of sense for this company to move forward. This process might be adopted by other companies that have been cautious about self-driving systems.
Based on the addition of the new Rivian custom chip and its processing systems, Rivian is confidently offering a subscription of Autonomy+ to its vehicles with the new RAP1 chip installed. This service will cost either $2,500 up front or $49,99 per month and allow drivers to have enhanced driver-assistance features, including hands-free driving on more than 3.5 million miles of mapped roads in the United States and Canada.
Would you subscribe to this new service? Do you think the new Rivian custom chip is the right move forward for the company? Driving is becoming more dependent on technology, and Rivian is moving forward with its new RAP1 chip with a strong push for full autonomy in the future.
