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Forbes Daily Briefing

Why Tesla Isn’t The AI Powerhouse Musk Says It Is

Forbes Daily Briefing

Forbes

Careers, Business, News, Entrepreneurship

4.612 Ratings

🗓️ 11 March 2025

⏱️ 5 minutes

🧾️ Download transcript

Summary

Elon Musk claims the carmaker will someday be the most valuable AI company in the world thanks to the reams of video data collected by its cars. Does all that data really give the company a competitive advantage?

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Transcript

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0:00.0

Here's your Forbes Daily Briefing for Tuesday, March 11th.

0:05.0

Today on Forbes, why Tesla isn't the AI powerhouse, Musk says it is.

0:12.0

Tesla shouldn't be seen as an electric car manufacturer anymore.

0:16.0

It's an AI company, if you believe CEO Elon Musk.

0:20.0

His confidence is tied to a unique data set,

0:23.5

petabytes, a petabyte is 1,000 terabytes, a video harvested from the company's cars as Tesla customers

0:30.4

log millions of driving miles worldwide. In theory, all that real-world data is exactly what Tesla needs to train its cars to operate

0:39.8

without any human assistance, a goal that's core to Musk's vision for the future of Tesla.

0:45.6

But there's a problem.

0:47.0

That data isn't necessarily as helpful as Musk claims.

0:50.7

Some of it isn't useful at all.

0:53.5

Building AI that can drive a car as well as a human is a challenge dramatically different

0:58.0

than building a natural language processing chat bot like ChatGPT,

1:02.0

which was trained on billions of words scraped from the internet.

1:05.0

While the goal with ChatGPT and competing systems like XAI's GROC

1:10.0

is to use pattern recognition to provide reliable

1:12.8

information and answers to questions, the results often fall short in embarrassing ways.

1:18.4

But if AI controlling a vehicle screws up, people can die.

1:23.1

Driving a car is a very different proposition with many more variables.

1:27.3

Driving conditions,

1:28.8

weather, construction, changing traffic patterns, how other vehicles are moving.

1:34.9

Successfully wrangling all those variables and being ready to react to unexpected developments

...

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