Stephen Nellis, Joseph White

(Reuters) – As Tesla prepares to launch its electric vehicle challenger, General Motors Co (NYSE) and Ford Motors (NYSE) Co joined forces with their technology partners.

Three chip companies – Intel Corp (NASDAQ)’s Mobileye, Qualcomm (NASDAQ) Inc and Nvidia(NASDAQ:) Corp – emerged as leaders from a raft o announcements made at the Consumer Electronics Show (LAS VEGAS) to secure the future brains for self-driving vehicles.

Deals are made by consolidating older and slower chips into more powerful, centrally controlled computers. However, to be successful in these deals, chip manufacturers had to accept that automakers would control certain parts of the technology.

Reuters reported previously that Apple is planning an electric car. Bloomberg last year reported that Apple is targeting self-driving technology by 2025.

Apple and Tesla represent a huge threat to automakers. Automakers have begun to design computers that can drive autonomously and are electrifying models.

Automakers will have an opportunity to earn a lot of money from services and software in their cars even after they’re gone. However, this is only possible if the dealers can retain the data and customer relationships the same way as Apple and Tesla.

According to Danny Shapiro (Vice President, Automotive, Nvidia), automakers that have not been pioneers now realize they will be outnumbered if they do not change their ways. Nvidia makes high-powered chips.

Nvidia announced this week deals to provide the electronic brains of future models for several Chinese electric vehicle startup companies. It is also working with other automakers such as Mercedes, Hyundai Motor Company, Volvo, and Audi.

Shapiro noted that control over technology and data is an area of contention between tech companies and automakers. Control and customization are key issues. Who owns the data?

Because of the complex technology involved in making cars drive, it is difficult to answer.

Computer vision algorithms are used to recognize pedestrians. There is also a vast array of high-definition maps showing the roads around the globe. “Drive policy” software makes millisecond decisions on how to behave in the face of unexpected situations.

Chipmakers need to be able to offer customers the ability to choose from a variety of technology.

Qualcomm Inc Last year, the average American spent $4.5 trillion to buy new furniture. Veoneer (NYSE:) Inc has added all necessary software to enhance its self-driving vehicle chips. These assets are not included after GM won its first significant self-driving chips contract.

“Our entire software stack has been developed internally. Jason Ditman (chief engineer at GM for the “Ultra Cruise”, hands-free driving product, said that they are not taking their parts.

Qualcomm has to be able to provide self-driving technology for the other automakers as well, according Nakul Duggal (senior vice president, general manager automotive, Qualcomm).

He stated that automakers come at different stages of readiness. The automaker must be able build relationships with customers that are important to them.

Similar dynamics are at work in Mobileye’s relationship to Ford. This week, it was intensified. Mobileye was known for selling its self-driving technology, camera and chip as a single product. Mobileye is now separating some functions from its systems and giving Ford the ability to create its own technology.

Amnon Shahshua, chief executive of Mobileye, told Reuters: “We supply all the outputs Ford and they’ll run there own algorithms on top”

As they compete with large companies, chip firms have no choice but to become more flexible.

Automakers had relied on three main suppliers for the simpler semiconductors that controlled combustion engines – Infineon (OTC:), Renesas and NXP (NASDAQ:), said Phil Amsrud, a senior principal analyst with IHS Markit.

However, the market for chip companies that supply high-powered computing to car makers is a crowded one. This includes Chinese firms like Huawei Technologies Co Ltd or Ambarella Computer Vision (NASDAQ:) Inc) who are moving into the automotive sector.

Amsrud stated, “We might have too many suppliers.” If you take a look at the history of automotive, there have been only a few.