Rivian’s shares experienced a downturn following the company’s announcement of its proprietary artificial intelligence chip. The chip is designed to supersede Nvidia technology and is part of Rivian’s strategy to advance automated driving capabilities in its future vehicles. Rivian is an American electric vehicle manufacturer and automotive technology company. The company designs, develops, and manufactures electric vehicles and accessories.
Rivian Chief Executive Officer RJ Scaringe emphasised the significance of this undertaking, stating that it represents a substantial, multi-year commitment. He highlighted that the in-house chip not only enhances performance but also reduces costs by hundreds of dollars per vehicle, a rare combination.
Despite the potential benefits, investors appeared unenthusiastic about the announcement. Initially, the stock showed a slight recovery upon the chip’s unveiling. However, as executives concluded their presentation on the technology, Rivian’s shares declined, reaching session lows on Thursday afternoon in New York.
The stock price plummeted by as much as 10 per cent, hitting $US15.73. This reaction suggests that the market remains cautious about Rivian’s ambitious technological advancements and their immediate impact on the company’s financial performance.
