Tesla sets up an AI training center in China
What's the story
Tesla has launched an artificial intelligence (AI) training center in China, the world's largest market for electric vehicles (EVs). The move comes after Beijing relaxed regulations on the technology. Grace Tao, Tesla's VP, told Shanghai-based financial news outlet Cailian that the new facility has enough computing power to develop assisted-driving features. However, she did not reveal its location or how much was invested in it.
Market impact
The move will help Tesla compete with local EV manufacturers
The establishment of the AI training center is a major step toward commercializing Tesla's Full Self-Driving (FSD) navigation software in mainland China. This comes at a time when several domestic EV manufacturers are racing to achieve level 3 (L3) autonomous driving capability. "Chinese fans of autonomous driving will benefit from intensified competition between Tesla and its local rivals," said Yin Ran, an angel investor in Shanghai.
Tech details
Tesla's FSD is considered a global leader
Tesla's FSD uses a neural network technology trained on video clips from real driving situations. This enables the cars to make human-like decisions. The system was considered a global leader, according to David Zhang, Secretary General of the International Intelligent Vehicle Engineering Association.
Regulatory hurdles
Challenges for Tesla in China
Despite its advancements, Tesla faces some challenges in China. The company is not allowed to transfer data collected from Chinese streets to the US. At the same time, US rules also prevent it from training its AI software in China. These restrictions have made it difficult for Tesla to fully leverage its AI capabilities in the Chinese market.