Tesla is on the verge of finalizing plans to power the global development of its self-driving system using data from China that could be processed within the United States, according to sources familiar with the matter. This marks a significant strategic shift by CEO Elon Musk, as the company aims to leverage Chinese data to advance its autonomous vehicle technology.

In an effort to enhance its self-driving capabilities, Tesla has been developing plans to establish a data center in China to train the algorithms required for fully autonomous vehicles. This initiative, confirmed by two anonymous sources, reflects the company’s push to secure approval from Chinese regulators to transfer data generated by its electric vehicles (EVs) in China out of the country for its “Full Self-Driving” (FSD) system.

While it remains uncertain whether Tesla will proceed with both options—transferring data internationally and setting up a local data center—the company appears to be hedging its bets by exploring parallel plans.

Tesla’s efforts underscore the urgency of its pivot towards artificial intelligence breakthroughs amid slowing EV demand and intensifying competition. The push to utilize data from Chinese vehicles comes as the U.S. government tightens restrictions on transferring AI technology from American firms to China.

Currently, Tesla is unable to offer the full version of FSD, which costs nearly $9,000, in China. Expanding the market for FSD in China could significantly boost Tesla’s revenue and profits, especially as it faces mounting pressure from Chinese rivals such as BYD.

To establish a data center in China for FSD development, Tesla would need to collaborate with a Chinese partner, according to two sources. This partnership may also present hardware-sourcing challenges.

Tesla’s campaign to harness more data from China accelerated during Musk’s recent whirlwind trip to Beijing, where he met with top officials, including Premier Li Qiang. During this meeting, Musk sought to expedite permissions for Tesla’s data transfer and discussed the possibility of investing in a data center in China.

Additionally, Musk explored the potential of licensing Tesla’s FSD systems to Chinese EV manufacturers. In April, Musk mentioned ongoing talks with another “major” automaker about FSD licensing, though he did not disclose the name.

“It would definitely be a milestone for Tesla if it rolls out FSD in China and leverages the China data for algorithm training,” said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight. “China played a key role in scaling up EV production for Tesla with the Shanghai factory. It would again serve a significant part in scaling up mass adoption of autonomous driving technologies,” he added.

Microsoft announced on Thursday its plans to offer cloud computing customers a new platform featuring AMD artificial intelligence (AI) chips, which will compete with Nvidia’s components. Detailed information about this initiative will be provided at Microsoft’s Build developer conference next week.

In addition to the AMD chips, Microsoft will also launch a preview of its new custom Cobalt 100 processors at the conference.

Microsoft’s Azure cloud computing service will soon include clusters of Advanced Micro Devices’ (AMD) flagship MI300X AI chips. These chips will offer customers an alternative to Nvidia’s H100 family of powerful graphics processing units (GPUs), which currently dominate the data center chip market for AI but are often difficult to procure due to high demand.

To build AI models or run applications, companies typically need to cluster multiple GPUs since the data and computation required cannot fit on a single processor. The integration of AMD’s MI300X AI chips into Azure aims to address this need effectively.

AMD has projected $4 billion in AI chip revenue for this year and has asserted that the MI300X chips are powerful enough to train and run large AI models. Alongside Nvidia’s top-tier AI chips, Microsoft’s cloud computing unit also offers access to its own in-house AI chips called Maia.

The new Cobalt 100 processors that Microsoft plans to preview next week promise a 40% performance improvement over other processors based on Arm Holdings’ technology. Companies like Snowflake have already started utilizing these processors, highlighting their advanced capabilities and potential impact on the market.

The introduction of AMD’s AI chips and the unveiling of the Cobalt 100 processors at the Build conference signify Microsoft’s ongoing commitment to enhancing its cloud computing services. By offering a broader range of high-performance AI chips, Microsoft aims to provide more options and flexibility to its customers, thereby strengthening its position in the competitive cloud computing landscape.

The United States has announced the establishment of an Air Transport Agreement with Nigeria, marking a significant milestone in the civil aviation relationship between the two nations. Revealed by the Public Diplomacy Department of the U.S. Mission in Nigeria, this agreement has been provisionally applied since 2000, reflecting long-standing cooperation in aviation.

The U.S. Mission emphasized that the agreement aligns with the U.S. Open Skies international aviation policy, which underscores commitments to stringent aviation safety and security standards. This bilateral accord aims to modernize and liberalize the aviation sector, fostering stronger economic and commercial ties between the United States and Nigeria.

Raphsody Banner, a spokesperson for the U.S. Mission, stated, “This agreement with Nigeria is a step forward in liberalizing the international civil aviation sector in Africa. It further expands our strong economic and commercial partnership, promotes people-to-people ties, and creates new opportunities for airlines, travel companies, and customers.”

Banner highlighted several key provisions of the agreement, including unrestricted capacity and frequency of services, open route rights, a liberal charter regime, and open code-sharing opportunities. These provisions enable air carriers to offer more affordable, convenient, and efficient air services to travelers and shippers, thereby boosting tourism and commerce.

The U.S. Mission also recalled recent high-level engagements between U.S. and Nigerian officials. In April, U.S. Deputy Secretary of State, Kurt Campbell, met with Nigeria’s Foreign Affairs Minister, Amb. Yusuf Tuggar, reaffirming their commitment to a robust partnership aimed at building a prosperous future for both nations.

Matthew Miller, a spokesperson for the Department of State, provided additional insights, stating, “On May 14, Deputy Secretary Kurt Campbell met with Nigerian Foreign Minister Yusuf Tuggar in Washington. Following their engagement during a successful U.S.-Nigeria Bi-national Commission (BNC) in Abuja last month, the Deputy Secretary and Foreign Minister made progress toward implementing mutual economic, governance, and security priorities.”

Campbell’s visit to Nigeria included co-chairing the sixth U.S.-Nigeria Bi-national Commission with Tuggar. Their discussions covered a wide range of topics including partnerships, shared prosperity, democracy, governance, accountability, and movement of people.

The Air Transport Agreement not only strengthens the aviation ties between the two countries but also signals a deepening of overall bilateral relations. By fostering greater connectivity and cooperation, this agreement has far-reaching implications for the aviation industry, economic growth, and the enhancement of people-to-people ties between the United States and Nigeria.