Rivian Is Now an AI Stock. Is It Finally a Buy?

"Rivian Automotive ( NASDAQ:RIVN ) held its first Autonomy and AI Day conference yesterday, unveiling its inaugural in-house AI chip, the Rivian Autonomy Processor (RAP1). This custom silicon, a 5-nanometer chip with 1,600 sparse TOPS of inference power, marks Rivian's shift toward vertical integration in autonomous driving tech. It positions the company to compete directly with Nvidia ( NASDAQ:NVDA ), Broadcom ( NASDAQ:AVGO ), and Tesla ( NASDAQ:TSLA ), unofficially earning it status as an "AI stock.""

"Integrated into the third-generation Autonomy Compute Module (ACM3), the chip processes data from an expanded sensor suite: 11 cameras totaling 65 megapixels, five radars, and a new LiDAR unit for precise 3D mapping. This setup enables "Universal Hands-Free" driving across 3.5 million miles of North American roads, covering most marked U.S. highways. Early 2026 will see over-the-air updates rolling out to second-generation R1 vehicles, adding features like automatic lane changes on command and co-steering for smoother urban maneuvers."

"The chip's importance to Rivian cannot be overstated. Previously reliant on Nvidia hardware , Rivian now controls its AI pipeline, slashing dependency on external suppliers and cutting costs by an estimated 40% per vehicle. With 205 gigabytes per second of memory bandwidth, RAP1 handles vision-centric AI workloads - crucial for Rivian's Large Driving Model (LDM), a foundational AI trained on real and simulated data using Group-Relative Policy Optimization. This mirrors large language models but focuses on drivin"

Rivian introduced the Rivian Autonomy Processor (RAP1), a custom 5-nanometer chip with 1,600 sparse TOPS of inference power that supports a vertically integrated autonomy approach. RAP1 integrates into the third-generation Autonomy Compute Module (ACM3) and ingests inputs from 11 cameras (65 megapixels), five radars, and a new LiDAR for precise 3D mapping. The system targets "Universal Hands-Free" driving across 3.5 million miles of North American roads and will deliver over-the-air updates to second-generation R1 vehicles in early 2026 with automatic lane changes and co-steering. RAP1 offers 205 GB/s memory bandwidth, supports Rivian's Large Driving Model, and reduces per-vehicle supplier costs by about 40%.

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