The traditional tier-1 model of being chip-agnostic, though flexible, hinders the creation of optimized autonomous driving (AD) solutions due to divided resources and lack of co-development with chip vendors. A new approach focuses on joint development between tier-1s and chip vendors to create optimized AD software stacks, enhancing chip performance and allowing OEMs to guide development for specific needs. This approach improves software optimization for parallel processing, real-time data handling, and sensor integration. Conventional performance metrics like Tera Operations Per Second (TOPS) are insufficient, emphasizing the need for metrics based on real-world applications. Joint development also enables scalable hardware modules with a common SDK, supporting varying levels of automation across vehicle models. Continental and Ambarella will jointly present an overview of how this new, more tightly coupled development approach between tier-1s and chip suppliers works on a practical, implementation level.