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Tesla Autopilot veterans launch company to accelerate self-driving development
After working on Tesla’s Autopilot team for 2.5 years, Andrew Kouri and Erik Reed decided to start their own self-driving, AI-based company rightfully named lvl5. Together with iRobot engineer George Tal, lvl5 aims to develop advanced vision software and HD maps for self-driving cars.
Founded in 2016, lvl5 was incubated at renown Silicon Valley incubator Y Combinator and later raised $2 million in seed funding from investor Paul Buchheit, who’s a partner at Y Combinator and creator of Gmail, and Max Altman’s 9Point Ventures.
In just 3 months, lvl5 racked up almost 500,000 miles of US roadway coverage with Payver. (Photo: lvl5)
“Working with lvl5’s founders while they were at Y Combinator, it was clear they have unmatched expertise in computer vision, which is the secret sauce of their solution,” said Buchheit. “I have no doubt this is the team to make self-driving a reality in the near term.”
At the center of lvl5’s technology is their computer vision algorithms. Founder and CTO George Tall previously specialized in computer vision technology at iRobot. In addition to Tall’s experience at iRobot, Kouri and Reed’s experience at Tesla undoubtedly left them with unparalleled expertise in computer vision.
Instead of turning to expensive LiDAR technology, lvl5’s computer vision analyzes its environment for stoplights, signs, potholes, and other objects. The system can be accurate to 10cm, a notable measure considering it’s derived from simple cameras and smartphones. In comparison, LiDAR systems can cost over $80,000 but are accurate to 3cm.
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- Each purple trace through the intersection contributes to building the 3D map from a 2D image. For each frame, lvl5’s computer vision technology computes the position of the vehicle relative to other objects in the intersection and create a point cloud that resembles the output from LiDAR. Each white sideways “pyramid” represents the location of a captured frame in the video trace. (Photo: lvl5)
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- This image is taken from one of lvl5’s neural nets, which is designed to draw a box around the position of traffic lights in an image. (Photo: lvl5)
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- With only two trips through this intersection, lvl5 can start to extract semantic features such as a stop sign. (Photo: lvl5)
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- The three founders of lvl5 in front of their SF home. Left to right: Erik Reed, Andrew Kouri, George Tall (Photo: Lvl5)
So how will lvl5 map roadways in the world using their computer vision technology? Smartphones. Well, for now at least. The company has released an app called Payver that allows anyone’s smartphone to collect data while driving and get paid between $.01-$.05 per mile, depending on a number of factors. Users of the app place their phone in a mount on their dashboard and let the app gather driving data.
The data is sent to lvl5’s central hub and processed by their computer vision technology. “Lvl5 is solving one of the biggest obstacles to widespread availability of self-driving technology,” said Max Altman, one of lvl5’s seed round investors and partner at 9Point Ventures. “Without accurate and efficient HD mapping, as well as the computer vision software that enables it, self-driving vehicles will take much longer to reach mass-market. This will delay everything from safer roads to efficient delivery services.”
GIF: lvl5
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“We have to make self-driving available worldwide – not just in California,” Co-Founder and CEO Andrew Kouri said in a company statement. “Our approach, which combines computer vision software, crowdsourcing and widely available, affordable hardware, means our technology is accessible and will make self-driving a reality today, rather than five years from now.”
The company has already established pilot programs with major automakers and both Uber and Lyft. Companies will pay lvl5 an initial fee to use the maps, along with a monthly subscription to keep the maps continuously updated. “Through its OEM-agnostic approach, lvl5 will be able to collect significant amounts of mapping data from millions of cars in order to scale the technology for the benefit of drivers and pedestrians around the world,” the company’s press release states.
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Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
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Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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Space finally faced the people living next to its next Terafab mega-project
SpaceX has solved Starship’s biggest challenge, Elon Musk says
