Intel (INTC) - Get Report is joining forces with Audi to supply chips for the German automaker's 2018 self-driving Audi A8, Silicon Valley Business Journal reports.

Earlier this month, Volkswagen's (VLKAY) Audi unti debuted its new Audi A8 luxury sedan, complete with level 3 autonomous driving, active electronic suspension, a mild hybrid engine and new infotainment system.

Level 3 autonomous driving means that the driver is still present, but are able to completely shift "safety-critical functions" to the vehicle, under certain traffic or environmental conditions.

"It embodies our heritage as well as our future," said Audi board member Dr. Dietmar Voggenreiter. The Audi AI Traffic Jam Pilot will move the car along autonomously while stuck in gridlock both on the highway and without input from the driver.

Shares of Intel were higher during mid-morning trading on Tuesday.

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