Musk eyes China to house data center powering global development of Tesla self-driving tech

Elon Musk is betting big on China for Tesla's self-driving technology. 

According to a report from Reuters, Tesla (arguably the most well-known electric vehicle [EV] manufacturer on the planet) may soon build a data center in China to analyze driver data in order to develop and refine the company's self-driving software. Dubbed a "Full Self Driving," or FSD, system, Tesla's self-driving tech relies on driver data analysis to build out the AI models and algorithms used by vehicles to drive themselves. 

FSD has been available in Tesla's cars for a little while but still requires "driver supervision," according to the company. This means that the car cannot drive itself fully autonomously; a human driver must be present in the car. However, Tesla hopes that by fleshing out the software powering FSD, its cars will eventually be able to operate without the need for a human presence. 

To better meet this goal, Tesla is hoping to construct a data center in China to collect and analyze the data of Chinese Tesla drivers. While other automakers have collected and used data from China for their businesses (even sending some of it outside the nation to do so), Tesla's data center would be the first in the industry to transfer driver data outside the nation to be used for developing AI algorithms for self-driving tech.

Tesla faces some obstacles to getting this data out of China and into its broader global business. For one, China's regulations regarding the use of its citizens' data are fairly stringent, at least when it comes to sending that data out of the country. Tesla would need the blessing of the Chinese government to not only collect and analyze this data but to transfer it outside of China with the intent of using it for AI development.

Secondly, Tesla would have to work with a company in China to construct the center. Considering Tesla has recently partnered with NVIDIA to source hardware for data processing and AI development, and considering the United States has strict sanctions barring American companies from selling hardware to and in China, this may require Tesla to change which companies provide the computing hardware for its data center. 

Tesla faces stiff competition in the EV market, particularly from Chinese EV manufacturers. This new push to get Chinese driver data seems like Tesla is trying to leapfrog competitors in the realm of self-driving cars. 

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