Tesla Just Activated a New AI Center to Solve FSD in China

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Tesla has officially brought a new AI training center online in China, marking a significant step in the company’s push to localize development of its assisted driving and artificial intelligence technologies in the world’s largest EV market.
According to a report from CnEVPost, Tesla China Vice President Grace Tao confirmed to local media outlet Cailian on Friday that the AI training center is now operational. The facility is designed to deploy Tesla’s AI capabilities locally, with a focus on advanced driver assistance systems and other AI-powered applications tailored specifically for China.
Tao did not disclose details around the center’s computational power, noting only that its capacity is sufficient to meet Tesla’s current needs. She also said the company will “actively engage” in assisted driving initiatives in China, though no firm timeline has been provided for when more advanced features will roll out.
The news comes as Tesla continues to enjoy strong momentum in China, with the automaker posting its third straight month of sales growth despite broader concerns around slowing demand in the region. While Tesla’s vehicles have performed well, the company’s Full Self-Driving system remains in regulatory limbo in China — and Europe — even as the technology advances rapidly elsewhere.
Last month, CEO Elon Musk suggested Tesla was targeting regulatory approval for FSD in China as soon as February, though that claim was later walked back by Chinese state media. In the meantime, Tesla has been gradually laying the groundwork. In February 2025, the company rolled out an advanced driver assistance system in China that closely resembled FSD in the U.S., carefully avoiding the “Full Self-Driving” branding before later rebranding the feature as “Intelligent Assisted Driving.”
Tesla has allowed Chinese customers to purchase the FSD software package for years, despite the feature being effectively unavailable — a situation that may now begin to change as local AI training ramps up. Starting February 14, Tesla will also transition FSD globally to a subscription-only model, eliminating the one-time purchase option.
The new AI training center could also support Tesla’s longer-term ambitions in China. A recent Tesla job listing hinted at a potential Robotaxi launch in the country, which would almost certainly require domestic AI training infrastructure to meet local data and regulatory requirements.
With over 1.1 million paying FSD users globally and China remaining a critical growth market, Tesla’s newly operational AI training center could prove to be a key piece in finally unlocking advanced autonomy in the region.