Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

Tesla's new proprietary chip for self-driving software is key to CEO Elon Musk's promise of a driverless robotaxi fleet by 2020. The chip alone won't deliver fully autonomous cars that can operate anywhere but it could help to increase the value of Tesla vehicles.

The big picture: Other carmakers are focused on autonomous driving for ride-sharing, but Tesla isn't accepting that consumers will abandon car ownership and is chasing a hybrid model of individual car ownership with the option for owners to earn money by sharing their vehicles via robotaxis.

What's happening: Tesla says it has deployed its Hardware 3 chip — which uses a neural network designed to support its self-driving software — in many of its 41,000 employees' Tesla vehicles since December 2018.

  • The company is collecting driving data from these cars to feed into its self-driving AI. It has also begun to deploy the new chip into all new Teslas, so that the company can collect data from all Teslas sold since March.
  • Musk suggested the speed of the chip is comparable to Nvidia’s top-of-the-line AV AI chip — that Tesla and its competitors have been using — and, because it was custom built for their self-driving AI, it can run it faster.
  • Hardware 3 is designed to exclusively run software that is cryptographically signed by Tesla. This would prevent hackers from controlling Teslas remotely or compromising them via fraudulent software.

The value of the cars could go up, Musk says: Tesla says it will send out self-driving software via over the air update by 2020, which would make vehicles with Hardware 3 capable of full autonomy. It would allow a Tesla owner to potentially add their car to the company's robotaxi pool and earn money off of rides.

Yes, but: Tesla's self-driving software is not yet fully developed, and Musk has missed ambitious deadlines in the past.

  • His cars likely will not reach the promised full, hands-free-anywhere driving capability — known as Level 5 autonomy — that soon but they could achieve limited, local mobility (level 3 or 4).
  • Even when the software is shared, state and local regulation will not allow Teslas to begin driving autonomously everywhere.
  • Additionally, it's not clear whether Tesla car owners who are not employees will consent to their cars being tracked at all times by the company and its ridesharing platform, and to having their driving data collected and used.

The bottom line: The move is disruptive to the AV industry, even if Musk misses the 2020 deadline. It marks a departure from Tesla relying on Nvidia chips, lays claim to a technological leap for AVs that would disrupt the rideshare industry as well, and aims to increase the value of Teslas by using them as robotaxis.

Sudha Jamthe is director of DriverlessWorldSchool and teaches AV Business at Stanford Continuing Studies. Jamthe owns a Tesla and shares of the company's stock.

Go deeper

CNN suspends Chris Cuomo indefinitely

Chris Cuomo in 2019. Photo: Theo Wargo/Getty Images for THR

CNN announced Tuesday evening that it has suspended anchor Chris Cuomo indefinitely following new revelations about his involvement in the management of his brother's sexual harassment scandal.

Driving the news: New documents released Monday showed that Cuomo used his contacts to garner information about the women accusing his brother, former New York Gov. Andrew Cuomo, of sexual harassment, as well as of emerging media coverage relating to the scandal.

2 hours ago - Health

FDA panel backs Merck's antiviral COVID pill

The Merck Cherokee Plant in Riverside, Pa. Photo: Paul Weaver/SOPA Images/LightRocket via Getty Images

An FDA advisory panel on Tuesday voted 13-10 to endorse an antiviral pill developed by Merck and Ridgeback Biotherapeutics to treat adults at high risk of becoming severely ill from COVID-19, despite concerns over its effectiveness and safety.

Why it matters: Oral antiviral drugs designed to prevent or treat COVID-19 could be key pandemic-fighting tools, if proven effective, especially as new variants emerge. If authorized, the Merck drug, known as molnupiravir, would be the first treatment of its kind to be made available in the United States.

Shooting at Michigan high school leaves 3 dead, 6 wounded

Screengrab: CBSN

Three people dead and six others are wounded after a shooting at a high school in Michigan according to the Oakland County Sheriff's Office.

Driving the news: The alleged shooter was a 15-year-old sophomore at Oxford High School and has been arrested, per police.