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China’s success in AI industry is driven by its strengths and flaws
China’s support and focus for the emerging AI industry, as well as its goal of becoming a world leader in artificial intelligence by 2030, comes from a source that the country takes very seriously — government policy. Thus, China’s possible domination of the AI sphere within the next 12 years could be the result of the nation using its strengths and weaknesses as a means to propel itself into the forefront of intelligent tech.
Kai-Fu Lee, an AI investor that helps tech startups get off the ground through his $1.8-billion dual-currency venture fund Sinovation Ventures, recently noted in a statement to WIRED that China’s goal of becoming the world leader in AI-driven solutions by 2030 is achievable because the target is literally a policy from the state.
According to Lee, China’s government has the capability to implement policies that are followed to a fault by both the country’s citizens and its business sector. The AI investor also noted that this system is difficult to replicate in other countries trying to dominate the AI field, such as the United States, due to the West’s democracy-driven nature.
Ultimately, however, the AI investor noted that China’s biggest driver for its AI initiative might lie in the size of its population and its citizens’ willingness to trade personal privacy for convenience or safety. In the Asian country, AI companies that gather data from the populace work without much protest from consumers, and largely operate within the approval of the state.
Just recently, an AI startup, SenseTime, received an additional $600 million in funding from investors, giving the company a total valuation of $4.5 billion. One of SenseTime’s most impressive solutions is its surveillance tech, which is being used by the security bureau of Guangzhou as a means to aid law enforcement. A screenshot of one of SenseTime’s surveillance solutions could be viewed below.
SenseTime’s AI surveillance solutions. [Credit: SenseTime/YouTube]
“AI is run on data as fuel and China has so much more data than any other country. Chinese users are willing to trade their personal privacy data for convenience or safety. It’s not an explicit process, but it’s a cultural element,” Lee noted.
The United States and China are currently head-to-head in the AI race. The United States has a headstart on the Asian country, but China is rapidly catching up. According to the AI investor, the most significant danger for the United States is its complacency.
“Chinese entrepreneurs know everything about what’s happening in Silicon Valley. Silicon Valley people, a few of them know a lot about China; some of them know a little bit about China; most of them know nothing about China,” Lee said.
China is showing no signs of slowing down its AI initiatives. Earlier this year, China announced plans to construct a massive $2.1-billion tech park in Beijing. The nearly 55-hectare tech park is expected to host up to 400 businesses from various bleeding-edge technologies, including biometrics, high-speed big data, and cloud computing, and of course, artificial intelligence.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
