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China looks to overtake US lead in AI research
A new study from a team of economists at the University of Toronto has concluded that China is steadily gaining on the United States in the field of artificial intelligence.
The 2017 Association for the Advancement of Artificial Intelligence (AAAI), a worldwide conference that presents the achievements of the world’s AI leaders, indicated that 23 percent of the authors of academic papers were based from China, according to the AI and International Trade study. This was a massive leap in terms of research output, considering that Chinese AI researchers only contributed 10 percent of the research output in the 2012 AAAI.
The United States, on the other hand, seems to be experiencing a steady decline in its artificial intelligence initiatives. While 34 percent of the academic papers presented in the 2017 AAAI were still American, the number shows a significant decrease from the output of the country’s researchers back in 2012, when studies from the United States represented 41 percent of the academic papers in the conference.
The University of Toronto researchers ranked the world’s most AI-active countries based on time-series data on the institutional affiliation of all authors of papers presented at the AAAI Conference. From this data, the economists concluded that China is catching up rapidly to the United States, with the former exhibiting a 13% growth in research output and the latter showing a 6% decline in academic papers from 2012-2017. The other countries in the Top 5 of the study’s rankings — the UK, Singapore, and Japan — were fairly consistent with their research output during the same period.
In a statement to the New York Times, Elsa Kania, an adjunct fellow at the Center for a New American Security, stated that the United States’s own AI initiatives during the Obama administration might have ironically triggered the artificial intelligence boom in the Asian economic superpower.
“It is remarkable to see how AI has emerged as a top priority for the Chinese leadership and how quickly things have been set into motion. The US plans and policies released in 2016 were seemingly the impetus for the formulation of China’s national AI strategy,” she said.
Not long after the release of the previous administration’s AI reports, China unveiled a plan to become a world leader in artificial intelligence by 2025. By 2030, China aims to have an AI industry worth $150 billion to its economy — one that can stoke national pride and spark breakthroughs in the field.
AI will foster an era of ‘superhuman’ workers, says Google X founder [Photo credit: iStockPhoto]
Seemingly in contrast to China, the United States appears to have tempered down its efforts to maintain its lead in the artificial intelligence field. In a statement to the New York Times, Jack Clark of Elon Musk-backed OpenAI stated that the United States currently lacks a central national strategy in AI. Unfortunately for the US, a focused national stance on intelligent technologies is something that China has in abundance.
“We may have a bunch of small initiatives inside the government that are doing good, but we don’t have a central national strategy. It is confusing that we have this technology of such obvious power and merit and we are not hearing full-throated support, including financial support,” Clark said, according to an NYT report.
As we noted in a previous report, China recently announced a massive AI-driven initiative in the form of a massive 54.87-hectare, 13.8 billion yuan ($2.1 billion) technopark in Beijing that would house companies directly involved in the development of AI technologies and machine learning. The technopark is part of China’s attempts at attaining global AI superiority by 2025.
Overall, despite warnings from Tesla and SpaceX CEO Elon Musk and prominent physicists such as Stephen Hawking, countries such as China are going full throttle towards a future that is rife with evolving, intelligent AI.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
