Friday, May 17, 2024

Reuters Exclusive: Musk pushes plan for China data to power Tesla's AI ambitions (TSLA)

Mr. Musk is walking a tightrope between American and Chinese national security concerns and more probably the use of faux concerns as an excuse to rein him in should doing so seem like the thing to do for either government.

We wish him luck and think he will succeed with the autonomous vehicle push but the risks increase with dependency on governmental goodwill.

The point is deadly serious, you had better know what you are up against when venturing into the big kids' sandbox. Our first inductee into the Climateer Hall of Fame was deadly serious as well:

...As always, heed the wise words of our first inductee into the Climateer Hall of Fame:

The 26th Secretary of War, the Democrat and Republican (!) Senator from Pennsylvania, Simon Cameron:

Our Hero
Simon Cameron
"The honest politician is one who 
when he is bought, will stay bought."

From Reuters, May 17:

  • plan for data center in China
  • But also seeks to transfer EV driving data to US
  • Tesla would need local partner for China data center
  • China data key to Tesla's pivot to AI

SHANGHAI/SINGAPORE, May 17 (Reuters) - Tesla (TSLA.O) is pushing ahead with plans to power the global development of its self-driving system with data from China that could be processed within the country, part of a strategic shift by Elon Musk, according to people with knowledge of the work.

As part of that effort, Tesla has been developing plans for a data center in China to train the algorithm needed for more fully autonomous vehicles, according to two people, who asked not to be named because the work remains private.
 
Until recently, Tesla has focused on efforts to secure approval from Chinese regulators to transfer data generated by its EVs in China out of the country for its “Full Self Driving” (FSD) system, according to the two people and an additional person with knowledge of the matter.
 
It was not clear if Tesla would proceed with both options for handling self-driving data from China - data transfer and a local data center - or if it was developing parallel plans as a hedge....
....MUCH MORE
 
A few recent posts have special importance in light of this article and our introduction.
First off, the agreement with Baidu noted in April 29's "Tesla Stock Jumps As Elon Musk Scores FSD Wins In China Visit (TSLA)"  and May 15's "Baidu’s Robotaxi Nears Profitability, While US Peers Are Stuck in Neutral".
 
On the issue of the Chinese government attitude toward controlling information, its uses and its flows, the October 2019 post "So You Want To Do Business In China Do You? "China’s New Cybersecurity Program: NO Place to Hide" embedded in a post last week is a quick primer on what the Party and government think.