Rivian Tumbles After Unveiling AI Chip for Self-Driving Push

Rivian Automotive Inc. shares fell after the company unveiled its own artificial intelligence chip designed to replace Nvidia Corp. technology as part of a broader push to enhance automated-driving features in future vehicles.

The automaker will equip its upcoming R2 sport utility vehicles with Rivian Autonomy Processor 1 chips and a new lidar sensor. Taiwan Semiconductor Manufacturing Co. will produce the chips that, combined with the new sensor and AI model developments, will bolster Rivian’s efforts to eventually offer autonomous driving capability.