Rivian Automotive announced a new custom silicon chip, the Rivian Autonomy Processor (RAP1), and a subscription service called Autonomy+ that will deliver expanding autonomous capabilities to its R1 and future R2 vehicles. The RAP1 chip, built in‑house, delivers 1,600 sparse TOPS of inference performance and is designed to integrate tightly with Rivian’s proprietary software stack, enabling the company to reduce reliance on external suppliers and accelerate feature roll‑outs.
The Autonomy+ subscription is priced at a one‑time fee of $2,500 or a monthly fee of $49.99. Subscribers will gain access to a “Universal Hands‑Free” mode that allows the vehicle to drive on highways without driver input, a feature slated for second‑generation R1 models. The subscription creates a new recurring revenue stream that complements Rivian’s existing software and services business and supports the company’s goal of becoming a high‑margin software licensor.
Rivian’s financial context underscores the strategic importance of these moves. In Q3 2024 the company reported a gross loss of $392 million, but in Q4 2024 it posted its first quarterly gross profit of $170 million, signaling a turnaround in cost management. The new chip and subscription are expected to further improve margins by lowering component costs and adding high‑margin recurring revenue. Rivian also plans to ship the new autonomy hardware on its R2 SUV, slated for deliveries in early 2026, with the hardware expected to be installed on R2 models starting in late 2026.
CEO RJ Scaringe emphasized the long‑term vision: “Our in‑house 1,600‑TOPS chip will enable dramatic progress in self‑driving and ultimately deliver on our goal of Level 4 autonomy, giving customers their time back when in the car.” Scaringe’s statement highlights the company’s focus on technology ownership as a path to profitability and a competitive edge against rivals such as Tesla, Waymo, and traditional automakers investing heavily in autonomous platforms.
The announcement positions Rivian to capture a larger share of the growing autonomous vehicle market. By controlling both hardware and software, Rivian can offer differentiated features, tighter integration, and faster innovation cycles. The subscription model also aligns with industry trends toward software‑as‑a‑service, providing a scalable revenue source that can offset the high upfront costs of vehicle production and support the company’s broader strategy to expand from premium R1 models to the mass‑market R2 SUV.
Overall, the launch of the RAP1 chip and Autonomy+ subscription marks a significant step in Rivian’s transformation from a vehicle manufacturer to a technology‑centric mobility company, with clear implications for its profitability, competitive positioning, and long‑term growth prospects.
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