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In this photo illustration, the Tesla Robotaxi logo is seen...
(Thomas Fuller/Getty Images)

Tesla moved its “robotaxi” to the Bay Area and put a driver in the driver’s seat

Tesla doesn’t need a permit to have a human drive you around with supervised full self-driving.

Rani Molla

Tesla’s overhype machine continues to turn out the hits.

Earlier this month, when asked about Tesla’s autonomous ride service, CEO Elon Musk said the company’s limited Austin robotaxi service would be expanding to the Bay Area, pending regulatory approvals. Tesla doesn’t have those permits yet and correspondence between the company and California’s autonomous DMV branch viewed by Politico never use the word “robotaxi.” Tesla and Musk have made an announcement, nonetheless.

Today Musk said, “You can now ride-hail a Tesla in the SF Bay Area, in addition to Austin.” Pay attention to the language. People can now use Tesla’s Robotaxi app to ride-hail a Tesla. That Tesla will have a person in the driver’s seat touching the steering wheel. In other words, you can pay for a person to drive you around in a Tesla, using the company’s supervised full self-driving software, which requires a driver to be in the seat, notably, and hold the wheel. That’s a far cry from true autonomous driving and something that basically already exists if you were to get in an Uber or a consumer’s Tesla that has enabled supervised full self-driving in the state.

Below is a video posted yesterday from Tesla influencer Teslaconomics. Using the Robotaxi app, he summoned a Tesla with a driver in the driver’s seat. You’ll see the driver’s hands remain hovering on or near the steering wheel the whole time. It doesn’t have Robotaxi signage.

Also, the “you” who can now ride-hail in this case seems to mean friends and family of Tesla employees, or invited members of the public. The automakers Austin service was similarly not fully open to all potential customers. The Austin service was also not fully autonomous driving. Under the program Tesla operates there, a safety monitor who can stop the vehicle sits in the front passenger seat for every ride, and tele-operators can take over remotely.

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Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

tech
Rani Molla

Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

tech
Rani Molla

Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

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