Tesla Plans to Invest $10 Billion in AI Technology This Year

Tesla CEO Elon Musk announced on Sunday that the company will be investing a whopping USD 10 billion this year in training and inference artificial intelligence (AI). This significant investment is aimed at advancing the AI capabilities of Tesla’s cars, with a primary focus on enhancing self-driving capabilities and the development of Robotaxis.

In a post on ‘X’, Musk emphasized the critical importance of this investment for Tesla’s competitiveness in the automotive industry. He stated, “Any company not spending at this level, and doing so efficiently, cannot compete.” This announcement sets a high bar for competitors, signaling a new phase of intense competition in AI development within the automotive sector.

The allocated funds will be utilized to accelerate progress in AI-driven technologies, particularly in-car inference AI. This move by Tesla is expected to further improve technological advancements in self-driving technology and AI integration within the automotive industry.

Last week, Tesla also made headlines by reducing the prices of its U.S models. The company slashed prices of its Model Y, Model X, and Model S vehicles by USD 2,000 each, following lower-than-expected first-quarter deliveries. Despite the price cuts, global vehicle deliveries in the first quarter fell for the first time in nearly four years, indicating a need for strategic investments like the one announced by Musk.

Overall, Tesla’s substantial investment in AI signals a future with AI-powered autonomous driving and underscores the company’s commitment to staying at the forefront of technological innovation in the automotive sector.