The establishment of a data center in China for FSD development would require Tesla to work with a Chinese partner and overcome potential hardware-sourcing challenges. Tesla has reportedly had talks with Nvidia about acquiring graphic processing units for a China data center, despite U.S. sanctions barring Nvidia and its partners from selling its most advanced chips in China. During a recent trip to Beijing, Musk discussed the possibility of Tesla licensing its FSD systems to Chinese EV makers and smoothing permissions for Tesla's data transfer.
Key takeaways:
- Tesla is developing plans for a data center in China to train the algorithm needed for more fully autonomous vehicles, as part of a strategic shift by Elon Musk.
- Tesla's efforts to make fuller use of data from vehicles in China to develop the automaker's artificial intelligence for driving comes as the U.S. government has tried to clamp down on the transfer of AI technology from U.S. firms to China.
- Setting up a data center in China for FSD development would require Tesla to work with a Chinese partner, and there is also a potential hardware-sourcing challenge.
- Elon Musk has discussed the possibility of Tesla licensing its Full Self Driving systems to Chinese EV makers.