Rivian Automotive Inc (NASDAQ:RIVN) has developed its own chip and artificial intelligence models to power future self-driving features, the company announced Thursday at an event in Palo Alto, California.
The move will replace Nvidia-powered systems currently embedded in Rivian’s vehicles and forms part of the company’s broader push into autonomous driving and software-driven services.
During its first “Autonomy and AI Day,” Rivian revealed a custom vehicle computer and proprietary AI models that will underpin its upcoming subscription service, Autonomy+, scheduled to launch in early 2026. The service will offer autonomous driving capabilities and will be available either as a one-time purchase of $2,500 or a monthly subscription starting at $49.99. For comparison, Tesla Inc’s premium Full Self-Driving package costs $8,000 upfront or $99 per month.
Rivian said a forthcoming software update will enable hands-free driving on more than 3.5 million miles of marked roads across North America. Unlike Tesla, which relies primarily on cameras, Rivian plans to integrate lidar and radar sensors to support Level 4 automation.
The announcements come as US EV sales have slowed following the expiration of a federal tax incentive for electric vehicle purchases. Analysts see the move as Rivian’s effort to differentiate itself in a highly competitive EV market by focusing on in-house technology and software services.
Rivian’s CEO, RJ Scaringe, said the company is “building the foundation for the next generation of intelligent, autonomous vehicles” and views the subscription model as a way to continually improve vehicle capabilities post-sale.
Shares of Rivian jumped over 15% on the update in Friday morning trade.