“.Rivian Unveils New AI Technology, Chip, and Robotaxi Plans

PALO ALTO, Calif. – Shares of Rivian Automotive fell 6.1% on Thursday after the electric‑vehicle maker hosted its inaugural Autonomy and AI Day, during which it outlined plans to launch self‑driving EVs.

Rivian CEO RJ Scaringe and senior executives said the company has built a custom silicon chip, a proprietary vehicle computer, and new AI models that will power autonomous capabilities in its upcoming models.

The automaker also announced an Autonomy+ subscription that will roll out to owners of its second‑generation vehicles in early 2026. The service, which will run on Rivian’s own Autonomy Processors and onboard computers, will be priced at a $2,500 one‑time fee or $49.99 per month.

By comparison, Tesla’s premium Full‑Self‑Driving (FSD) offering costs $8,000 up‑front or $99 per month.

During the hour‑long event, Rivian’s stock slipped roughly 3% and fell further after OpenAI unveiled its latest model, adding to market volatility.

“AI is enabling us to create technology and customer experiences at a rate that is completely different from what we’ve seen in the past,” Rivian founder and CEO RJ Scaringe said.

Executives said a forthcoming software update will introduce a “Universal Hands‑Free” capability, allowing Rivian owners to drive hands‑free on more than 3.5 million miles of U.S. roadways—essentially covering the majority of marked roads in the United States.

Scaringe noted that the advanced driver‑assistance system will improve through reinforced learning as more miles are logged. He did not provide a timeline for full Level 4 autonomy or a potential robotaxi fleet.

Unlike Tesla, Rivian plans to rely on a combination of lidar, radar, and camera sensors in its upcoming R2 platform to achieve Level 4 automation as defined by the SAE.

Waymo, Alphabet’s robotaxi service, already classifies its vehicles as Level 4, allowing passengers to sleep while the car navigates normal traffic and weather conditions.

Scaringe emphasized that while the initial focus will be on personally owned vehicles—which currently represent the bulk of U.S. mileage—the technology also positions Rivian to enter the rideshare market.

Rivian is not alone in pursuing Level 4 autonomy. Tesla and General Motors are developing proprietary driverless stacks, while Honda, Lucid, and Nissan have partnered with venture‑backed startups such as Helm.AI, Nuro, and Wayve to explore alternative approaches.

Powering Rivian’s self‑driving ambitions will be an in‑house chip slated for 2026 launch. Vidya Rajagopalan, Rivian’s vice president of electrical hardware, described the chip as a multi‑chip‑module (MCM) design with a high‑bandwidth memory interface—crucial for AI workloads. The processor delivers 205 GB/s of memory bandwidth.

“Rivian is uniquely positioned to move from a software‑defined vehicle to an AI‑defined vehicle,” said Chief Software Officer Wassym Bensaid.

The company also unveiled an AI‑powered “Rivian Assistant,” a next‑generation voice interface expected to debut on first‑ and second‑generation models in early 2026.

Rivian’s autonomous strategy is supported by a $5.8 billion joint venture with Volkswagen, which will share Rivian’s software and electrical‑architecture expertise for future platforms.

Rivian faces mounting pressure to demonstrate growth amid a slowdown in U.S. battery‑electric vehicle sales and intensified competition from Chinese manufacturers. The market contraction was accelerated after the federal $7,500 EV tax credit expired in September 2025.

Despite a 25% share price increase this year, Rivian remains down more than 80% from its 2021 IPO levels, reflecting both internal execution challenges and broader industry headwinds.

Industry Context and Outlook

Rivian’s decision to develop its own silicon and integrate lidar distinguishes it from many North American peers that have either outsourced chips (e.g., Tesla’s partnership with Nvidia) or dismissed lidar altogether. This hardware differentiation could yield a competitive moat if the company can demonstrate reliable Level 4 performance at scale.

From a financial perspective, the $2,500 upfront or $49.99 monthly pricing for Autonomy+ is markedly more affordable than Tesla’s FSD offering, potentially driving higher adoption rates among price‑sensitive buyers. However, the revenue impact will depend on the pace of vehicle deliveries and the ability to monetize software upgrades over the vehicle lifecycle.

Supply‑chain considerations also play a role. Rivian’s MCM chip architecture promises higher integration density, but it introduces manufacturing complexity that could affect yield rates and production timelines. Successful mass production by 2026 will be a key validation point for investors.

Strategically, the joint venture with Volkswagen provides a pathway to scale these technologies across a broader portfolio, potentially unlocking economies of scale that could lower unit costs and accelerate deployment in both premium and mass‑market segments.

Overall, Rivian’s aggressive push into AI‑defined vehicles marks a pivotal shift from pure EV manufacturing to a software‑centric business model. Execution risk remains high, but if the company can deliver on its Level 4 roadmap, it may capture a valuable niche in the emerging autonomous‑mobility ecosystem.