AMD is going to build an AI processor for Tesla’s Self Driving Cars

The carmaker has got back samples of the first build of its processor and is now managing tests on it, said an expert close to the matter.

The work to build its own chip is in line with Tesla’s potential to be vertically mixed and reduce dependence on other companies.

But Tesla isn’t simply going do it alone in chip development, according to the expert, and will make on top of AMD intellectual property.

AMD percentages spiked after News reported that the organization is working with Tesla. Shares of the capital ended the day nearly 5 percent higher and advanced to climb after hours.

On Wednesday Sanjay Jha, CEO of AMD spin-off and chip fabricator GlobalFoundries said at the business technology conference in Santa Clara, California, named Tesla as an example of companies that were operating with fabricators. GlobalFoundries, which manufactures chips, has a wafer supply contract in place with AMD through 2020.

In a statement, GlobalFoundries said the organization does not comment on consumers or potential customers and denied Jha said that the organization was working directly with Tesla.

A further power-efficient purpose-built piece could help Tesla get closer to achieving totally independent driving. Tesla CEO Elon Musk declared this year that capacity will be available to consumers in 2019.

Tesla’s silicon project is jumping ahead under the direction of longtime chip architect Jim Keller, the head of Autopilot hardware and software since the passage of Apple veteran Chris Lattner in June. Keller, 57, joined Tesla in early 2016 following two stints at AMD and one at Apple. Keller landed at Apple in 2008 through its purchase of Palo Alto Semiconductor and was the designer of Apple’s A4 and A5 iPhone chips, among other things.

More than 50 people are going on the initiative under Keller, the expert said. Tesla has brought on several AMD veterans after hiring Keller, including director Ganesh Venkataramanan, principal hardware engineer Bill McGee and system circuit pattern lead Dan Bailey.

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