Tesla Inc. is switching to Intel from NVIDIA to make chips for the massive information and entertainment system of Tesla cars.
The massive infotainment screens in Tesla’s cars will be powered by new components from the world’s largest chipmaker, Intel, after the automaker replaced chip supplier NVIDIA for that function.
Ever since Tesla took the wraps off the Model S, its electric cars have had NVIDIA hardware powering the infotainment system and the giant touchscreen that controls it.
Tesla’s Model 3 and new versions of its other cars will get the new Intel processing modules, said the people, who asked not to be identified speaking about a private agreement.
NVIDIA and Intel declined to comment. Tesla declined to comment as well.
It could be another blow for NVIDIA as reports stated that Tesla is working to develop its own chip to power its future self-driving cars by partnering with semiconductor company AMD. NVIDIA currently supplies chips for Tesla’s Autopilot driver assistance system.
Cars are being made with more electronics inside, making the automotive market increasingly important for chipmakers. Nvidia’s stock has surged more than sixfold in the past two years, partly on its rising business with car makers.
Most of the new revenue has come from the new dashboard systems that control entertainment and information for drivers.
Intel, the world’s largest chipmaker, is looking to lower its dependence on personal computers and persuade automakers they need its powerful processors to make vehicles capable of making more decisions for themselves.
Intel doesn’t break out how much revenue it gets from that market. In its most recent quarter, NVIDIA reported automotive sales of $142 million, about 6 percent of its total revenue.
Intel shares rose almost 1 percent to close at $37.47 in New York. NVIDIA closed at $171.96, up 0.6 percent, after climbing as much as 4.5 percent earlier in the day.
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