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Tesla Self DrivingTesla $TSLA has been developing an Articial Intelligance (AI) Chip for self driving car using $AMD intellectual property CNBC reported. $AMD shares closed  4.7% higher and continued to be up 8.3% through after hours.Tesla's new chip will likely reduce its reliance on Nvidia $NVDA.

$AMD spin-off GlobalFoundries CEO Sanjay Jha said it's working directly with Tesla on the chip. GlobalFoundries has a wafer supply agreement in place with AMD through 2020.

Tesla has over 50 employees involved in the project, including the head of Autopilot hardware and software Jim Keller. Keller joined Tesla in early 2016 following two stints at AMD and one at Apple. Keller is reknowned in the industry and his chips include the design of Apple's A4 and A5 iPhone chips.

Reaction: 13.74 +0.62 (+4.73%) Market Close Then After-hours14.24 +0.50 (+3.64%) = +8.3%

CNBC reported that sources say $TSLA has received back samples of the first implementation of its processor and is now running tests on it.Tesla CEO Elon Musk has promised that autonomous driving capability will be available to consumers in 2019. The key is a chip that power-efficient and able to harness AI to drive a car autonomusy. Current Tesla autopilot self-driving vehicles use Nvidia graphics processing units and Tesla has used chips from Mobileye (now part of Intel) before. The notorious $TSLA auto pilot accident last year was using Mobileye chips.

AMD and Tesla did not immediately respond to requests for comment.

Source: CNBC

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