Tesla launches China AI training centre as self-driving race accelerates


Tesla has begun operating a China-focused artificial intelligence training centre to enhance its cars’ self-driving capabilities in the world’s largest electric vehicle (EV) market, following Beijing’s deregulation of the technology.

Grace Tao, vice-president of Tesla, told Shanghai-based financial news outlet Cailian on Friday that the centre had sufficient computing power to support development of assisted-driving features. However, she did not disclose details such as the centre’s location or investment size.

The launch marked a significant step towards commercialising Tesla’s Full Self-Driving (FSD) navigation software in mainland China, where several domestic EV assemblers are racing ahead with 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. “As thousands of L3 cars are likely to hit China’s roads in 2026, a new battle will take shape as all electric-car builders try to deliver efficient and affordable self-driving systems.”

Tesla’s FSD relies on a so-called neural network technology, which is trained using video clips from real driving situations, enabling vehicles to make human-like decisions. The system was regarded as a global leader, according to David Zhang, secretary general of the International Intelligent Vehicle Engineering Association.

Tesla rolled out its Full Self-Driving navigation software in mainland China in February last year. Photo: AFP
Tesla rolled out its Full Self-Driving navigation software in mainland China in February last year. Photo: AFP

Tesla faces hurdles in China, where it is barred from transferring data collected from Chinese streets to the US, while US rules prevent the company from training its AI software in China.

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