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The information and entertainment systems in Tesla, Inc.’s cars will be powered by chips realized by Intel Corporation, after the company founded by Elon Musk replaced Nvidia as its chip supplier.

People who asked not to be identified, scared by a private agreement, said that starting from Tesla Model 3, the new cars will use the new Intel components. The three companies, Nvidia, Intel and Tesla declined to comment this decision.

Since cars are being made with even more electronics, the automotive market is becoming increasingly important even for chipmakers. Nvidia knows exactly what it means, since its stock surged than sixfold in two years thanks to the agreement with car makers, especially Tesla. In particular, most of the new revenue came from the new dashboard systems.

Intel, the world’s largest chipmakers, founded in 1968 by Gordon Moore and Robert Noyce, is trying in the last years to lower its dependence on personal computers, being this a market which is constantly losing share. The company tried to enter the mobile market with its Atom CPUs, but failed. Now, they want to not loose this train, and enter the automotive market, which is the future battleground for hardware and software firms. Intel is trying to persuade car makers that they need its processors for cars that are becoming constantly more autonomuous.

tesla model 3

Tesla, Inc., formerly named Tesla Motors, is an American automaker founded in 2003 by Elon Musk, JB Strauble, Martin Eberhard, Marc Tarpenning and Ian Wright, and specialized in electric cars, battery energy storage and residential solar panels through their subsidiary, SolarCity. The company gained attention with the production of Roadster, an electric sports car. It was February 2008. Since that startpoint, they differentiated their production with various and expensives models of electric cars. However, they just shipped just 76,000 vehicles in last financial year. Now, they are starting working on more accessible models to increase their production, and that’s exactly the reason why it gain attention from many hardware producer. In fact, chipmakers working with Tesla will provide a full computing engine that will allow those cars to become fully autonomous. Until now, some driving situations are handled by Nvidia’s chips powering Tesla’s Autopilot 2 system.