Tesla to spend $10 billion on AI this year

NEW DELHI: Tesla CEO Elon Musk announced on Sunday that the company will spend about $10 billion this year on training and inference artificial intelligence (AI).

The Tesla CEO and SpaceX founder said in a post on X, “Tesla will spend around $10B this year in combined training and inference AI, the latter being primarily in car. Any company not spending at this level, and doing so efficiently, cannot compete”.

Tesla will spend around $10B this year in combined training and inference AI, the latter being primarily in car.

Any company not spending at this level, and doing so efficiently, cannot compete.

— Elon Musk (@elonmusk) April 28, 2024

Musk’s tweet highlights the critical importance of this investment for Tesla’s competitiveness in the automotive industry. He also asserted that any company failing to match or exceed this level of investment in AI, while ensuring efficiency, will struggle to remain competitive.

The allocated funds will be utilised to advance AI capabilities of Tesla’s cars. The investment will have a primary focus on enhancing self-driving capabilities in cars and the Robotaxis.

The announcement by Musk will further improve the technological advancements in self-driving technology and AI integration within the automotive sector.

This significant investment signals a future with AI-powered autonomous driving. With Tesla’s substantial investment, the company aims to accelerate progress in AI-driven technologies, particularly in-car inference AI.

The announcement sets a high bar for competitors, signaling a new phase of intense competition in AI development within the automotive industry.

Last week, Tesla had also reduced the prices of its US models. The company reduced prices of its Model Y, Model X and Model S vehicles by $2,000 each this week, days after the first-quarter deliveries of the automaker missed market expectations, reported Reuters.

The EV maker reported that in April month its global vehicle deliveries in the first quarter fell for the first time in nearly four years as price cuts failed to stir demand. (ANI)