Chinese automaker BYD has signed a deal with generative AI firm DeepSeek to co-develop new autonomous technology. This move could put pressure on rival Tesla, which has been investing heavily in its own self-driving capabilities. BYD’s “God’s Eye” advanced driver assistance system (ADAS) will be integrated into all of its cars, starting from budget-friendly models.
The God’s Eye system uses a combination of onboard chips, cloud computing, and sensors to power its AI technology. The setup has been enhanced with DeepSeek’s R1 AI model to improve vehicle AI capabilities and those in the cloud. This could give BYD an edge over Tesla, which is facing regulatory challenges in China.
Tesla CEO Elon Musk recently stated that the company is struggling to roll out full self-driving features (FSD) in China due to restrictions on training data transfer and US government regulations. However, outside of China, Tesla’s FSD plans remain on track for 2026.
BYD’s partnership with DeepSeek could help it overtake Tesla in pure EV sales, particularly in the Chinese market where autonomous software is a key selling point. While the company may not pose a threat to Tesla in the US due to tariffs imposed by former President Joe Biden, this development could be a significant blow to Tesla’s autonomy ambitions globally.
Source: https://finance.yahoo.com/news/chinas-byd-links-up-with-deepseek-in-an-ai-threat-to-tesla-180037037.html