Tesla (TSLA) is working to advance self-driving technology in China, but must comply with local regulations. As part of the effort, the company is considering processing data collected in China in Chinese data centers to avoid conflicts with regulators. The company is also seeking approval to transfer data overseas for processing, Reuters reported.
Yahoo Finance Autos reporter Pras Subramanian explains why this is an important move for Tesla.
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This post was written by Stephanie Mikulich.
video transcript
Tesla is reportedly moving forward with plans to build a data center in China.
Reuters reports that it could be used to develop autonomous driving algorithms.
If you want to know more, we are planning to introduce our own Pro Romanian.
This is really a big deal.
What do we know so far?
Well, there’s actually a little wrinkle here.
They’re building data centers not because they’re actually using the data there, but because they can’t bring the data into the US, they had to set up data centers in China, or they already have. I mean, they had a data center. , local regulations regarding data collection.
The point is, Musk wanted to bring all the data from China to the US to train the self-driving AI ALGO, right?
Can not do that.
So now, according to Reuters, they’ve changed their tune and said, “Okay, we’re going to build it out. The data center will stay here, the data will stay here.”
Training algorithms in China.
So this is important because China is where you will find the most cars in the world that are equipped with FSD type sensors.
Well, you also have a lot of mapping technologies and a lot of other partners that share data with you.
So he’s subliminally saying, what if we trained Argos in China and took that information and spread it elsewhere, right?
It’s kind of like a pivot here.
Oh, there’s some risk there, when it comes to China, you never know when they’re going to lock you down, you never know when they’re going to say, you know we’re going to stop you here.
So it’s kind of a risk.
But I also think he sees it as an opportunity, you know, they’re capitalizing on the Reuters article that the giga factory in China has become a major factory for them.
And that wasn’t necessarily the case when people thought about building factories there.
So maybe China is the instigator and maybe that’s kind of the angle where China is trying to attack FSD.
Is this your strategy?
Do analysts think it makes sense in terms of Tesla’s long-term goals to try to expand its adoption?
II I Well, I think there are two parts, right?
Certainly, this is a big market, so other players like Baidu are widely mapped and are already doing things like that and can collaborate.
But the problem is, they don’t potentially own the data, right?
It is also mentioned that these NVIDIA chips cannot be sold in China as they are banned.
So how do you get around it?
They need those chips to build a data center and train Aro.
Yeah, but I think they’re right. There are opportunities, but there are also risks.
