This article first appeared on GuruFocus.
Rivian Automotive (RIVN) outlined a broad push into artificial intelligence and self-driving features during its first Autonomy and AI Day on Thursday.
The update came as the stock fell more than 6%, part of a wider pullback in AI-linked names.
Executives said the company has developed a new in-house processor designed to offer roughly four times the computing power of its current system, replacing earlier chips supplied by Nvidia (NASDAQ:NVDA). The move echoes Tesla's (NASDAQ:TSLA) effort to design its own AI hardware.
Rivian plans to add lidar, a laser-based sensor used to map surroundings, to its upcoming R2 midsize SUV arriving in 2025. The system will join additional cameras and radars in an effort to bolster safety and support Rivian's next wave of driver-assistance features.
CEO R.J. Scaringe said Rivian expects hands-off, eyes-on driving to expand to more than 3.5 million roads by year-end. The company aims to introduce point-to-point navigation in 2025, followed later by eyes-off capability, a target also pursued by General Motors (NYSE:GM).
Rivian is also preparing an AI assistant due in early 2026 and a new subscription plan, Autonomy+, priced at a one-time $2,500 fee or $49.99 per month. The company said both offerings may help generate recurring revenue as it invests in scaling production and autonomy software.
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