BEIJING, February 7, 2026, 01:15 GMT+8
- Tesla has set up an AI training center in China, concentrating on local use cases and assisted driving, according to local media reports.
- Tesla vice president Tao Lin confirmed the company is already utilizing the facility but kept its computing capacity under wraps.
- Reports indicate the move arrives amid China’s intensifying race in self-driving tech and automakers setting their sights on Level 3 autonomy.
Tesla (TSLA.O) has set up an AI training center in China, targeting local use cases and driver assistance, according to Chinese media outlet Cailianshe on Friday. The report quoted Tesla’s vice president, Tao Lin.
The centre highlights Tesla’s push to localise its Full Self-Driving (FSD) software in China, amid rising competition in driver-assist features and evolving regulatory policies.
Chinese automakers are pushing forward with Level 3 (L3) autonomous driving. These cars manage certain driving tasks independently under specific conditions but still rely on drivers to take control when alerted.
Tao revealed that Tesla has invested in and begun operating an AI training center in China, aimed at supporting local training for its assisted-driving projects and other AI applications tailored to the Chinese market. She didn’t share details about the facility’s computing capacity, noting only that it’s sufficient for current demands.
The South China Morning Post reports Tesla’s latest launch marks progress toward rolling out its FSD navigation software commercially in mainland China, following Beijing’s relaxation of rules around the tech. Domestic EV makers are now chasing Level 3 autonomy. “Chinese fans of autonomous driving will benefit from intensified competition between Tesla and its local rivals,” said Yin Ran, a Shanghai-based angel investor, to the newspaper. Scmp
Tao told Cailian the centre has enough computing power to back assisted-driving feature development, but she didn’t reveal its location or Tesla’s investment amount, the SCMP reported.
FSD uses neural networks—AI models trained on video clips from actual driving scenarios, the SCMP reported. David Zhang, secretary general of the International Intelligent Vehicle Engineering Association, called the system a global leader, the report said.
Tesla launched its FSD navigation software in mainland China this February, according to the SCMP. But challenges remain: Tesla can’t transfer data gathered on Chinese roads back to the U.S., and American regulations block the company from training its AI systems within China.
However, it remains uncertain how soon local training will lead to a broader rollout of automated features across China. Tesla hasn’t revealed the centre’s location, investment details, or computing power, leaving the pace of the project’s expansion unclear.
Assisted driving doesn’t mean full autonomy—most systems still depend on drivers remaining attentive. Even at L3, the vehicle operates only within specific conditions and will hand control back once those limits are reached.
