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Tesla reportedly switching from Nvidia to Intel for new chip

Elon Musk
Brendan Smialowski | AFP | Getty Images
Elon Musk

Tesla may be choosing Intel over Nvidia to make chips for the "infotainment" system in Tesla cars, Bloomberg reported Tuesday, citing unnamed sources.

Intel shares were up slightly following the news.

Intel chips will now power the on-board information and entertainment system behind the large screens in the center console of Tesla cars. Drivers control most of the car's features through those screens. Tesla's Model 3 sedan, for example is practically devoid of any switches or dials on its dashboard, requiring users to do just about everything through the on-screen system.

Neither Intel nor Nvidia was immediately available for comment.

"Tesla's policy is to always decline to comment on speculation," said a Tesla spokesperson in an email to CNBC.

Intel also supplies chips for Alphabet's Waymo autonomous car project.

It could be another blow for Nvidia. CNBC previously reported Tesla is working with AMD to make chips for the Tesla's self-driving technology, according to a source. Nvidia currently supplies chips for Tesla's Autopilot driver assistance system.

Read the full story at Bloomberg.

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