FILE PHOTO: The Rivian logo is shown on one of their new electric SUV vehicles in San Diego, U.S., December 16, 2022. REUTERS/Mike Blake//File Photo
PALO ALTO, Dec 11 (Reuters) - Rivian Automotive on Thursday unveiled its first custom computer chip for self-driving and a new paid driver-assistance package called Autonomy+, as the electric-vehicle maker leans on artificial intelligence to boost revenue.
The announcements, made at Rivian's first Autonomy and AI Day, come as carmakers worldwide pour billions into AI systems that power long-awaited self-driving technologies that have faced several technical challenges.
Rivian said its longer-term goal is Level 4 autonomy, in which a vehicle can operate without human input in certain conditions, and that its new foundational AI model trained on vast amounts of real and simulated driving data, called the Large Driving Model, will underpin those efforts.
The new in-house chip, called the Rivian Autonomy Processor, will boost the vehicles' capacity to process data from cameras, LIDAR and other sensors, key to achieving its target of higher levels of autonomous driving. Rivian had previously relied on Nvidia processors.
Tesla, too, develops its own AI chips, produced by Samsung and Taiwan Semiconductor Manufacturing Co.
Driver-assistance package Autonomy+, priced at $2,500 one-time payment or $49.99 per month, will include a Universal Hands-Free feature that works on more than 3.5 million miles of roads across the U.S. and Canada. The price is significantly lower than Tesla's $8,000 to buy its Full Self-Driving system outright, or $99 per month as a subscription.
Rivian also said it will add LIDAR sensors for three-dimensional mapping to its next-generation R2 models, improving their ability to identify obstacles and road conditions. The approach mirrors that of Alphabet's Waymo.
The first deliveries of the R2 are expected in the first half of next year.
Rivian's current second-generation R1 vehicles will receive software updates, including expanded hands-free functions. It had rolled out hands-free driving earlier this year, and expects to launch "eyes-off" functionality in 2026.
The company also introduced an AI Assistant that it says can manage some vehicle functions, sync with apps and flag potential repair issues.
COOLING EV DEMAND
The announcements arrive as demand has cooled for electric vehicles in the U.S. after a $7,500 federal tax credit expired.
Rivian has narrowed its losses so far this year, but has trimmed its full-year delivery outlook to between 41,500 and 43,500 vehicles. Analysts expect the demand to remain uneven without the $7,500 incentive.
Rivian's lower-cost R2 SUV, expected to rival Tesla's best-selling Model Y crossover, is viewed as essential for reaching more price-sensitive buyers.
(Reporting by Akash Sriram in Bengaluru; Editing by Sahal Muhammed)
