(Bloomberg/Ed Ludlow) — Rivian Automotive Inc. has developed its own artificial intelligence chip, replacing Nvidia Corp. technology as part of a broader push to add and 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.

“This is not a bet one takes lightly, this is a huge commitment that’s taken us years,” Rivian Chief Executive Officer RJ Scaringe said in an interview. “Usually, you can’t lower cost and improve performance. But here, we improved performanc

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