Rivian Automotive Inc (NASDAQ: RIVN) rallied more than 15% today after the electric vehicles (EV) specialist showcased bold plans to accelerate its push into autonomous driving.
At its inaugural “Autonomy & AI Day”, the company unveiled a proprietary autonomy processor, a full artificial intelligence (AI) driving stack, and a self-driving subscription service slated for 2026.
Including today’s surge, Rivian stock is up a whopping 80% versus its year-to-date low in March.
What we know about Rivian’s custom autonomy chip
Central to Rivian’s announcement was the debut of its proprietary Rivian Autonomy Processor, or “RAP1”.
The chip is designed specifically for vision-heavy artificial intelligence workloads, giving Rivian control over a critical piece of the self-driving stack.
RAP1 boasts multi-chip module packaging, high memory bandwidth, and the ability to process billions of pixels per second.
This level of performance is intended to support real-time decision-making for autonomous vehicles, a capability that CEO RJ Scaringe described as transformative.
“AI is enabling us to create technology and customer experiences at an unprecedented rate,” he said.
By developing its own chip rather than relying on third-party suppliers, RIVN is signaling that it wants to compete head-to-head with Tesla Inc. and other leaders in autonomy.
The move also gives Rivian flexibility to tailor its hardware to its vehicles, potentially improving efficiency and safety.
What we know about Rivian’s autonomy subscription service
Rivian also announced plans to launch a subscription-based self-driving package – Autonomy+ in early 2026.
The service will be offered on second-generation vehicles at $2,500 upfront or $49.99 per month.
Unlike Tesla’s camera-only approach, Rivian’s system will combine lidar, radar, and its custom autonomy computer to deliver Level 4 capabilities – where drivers can safely disengage in normal conditions.
A forthcoming software update will introduce “Universal Hands-Free,” enabling hands-free driving across millions of miles of mapped roads in North America.
This subscription model could become a recurring revenue stream, allowing Rivian to monetize autonomy beyond the initial vehicle sale.
For consumers, it offers flexibility: pay once for lifetime access or subscribe monthly. For Rivian stock, it represents a scalable way to capture value from its technology investments.
Here’s what it means for Rivian stock
The combination of proprietary hardware, advanced sensors, and a subscription model paints a compelling growth story.
Investors see Rivian’s autonomy push as a way to differentiate itself in a crowded EV market while creating new revenue channels.
The RAP1 chip demonstrates technical ambition, while Autonomy+ signals a clear monetization strategy. Together, they suggest Rivian is not just chasing Tesla but carving its own path.
The strong RIVN stock reaction reflects confidence that the company’s roadmap could accelerate adoption and improve margins over time.
With hands-free driving features set to roll out soon and full autonomy on the horizon, Rivian’s announcement has shifted sentiment decisively.
For shareholders, the event marked a turning point – proof that Rivian is ready to compete in both electric vehicle and autonomous mobility.
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