Tesla Integrates Chinese AI Models into Cars, Expanding Voice Assistant Capabilities

Tesla is integrating Deepseek and Doubao, two competing AIs with Elon Musk's Grok, inside its cars in China. Unlike Grok in US vehicles, these AIs will be able to interact with car functions. DeepSeek will be used as a chatbot/voice assistant, while Doubao will replace voice commands with a new "Hey, Tesla" wake-up word. Tesla is partnering with ByteDance's Volcano Engine cloud service to host both AI models. This move brings Tesla in line with the competition in China, where AI models are increasingly common in electric vehicles.

In a significant move to bolster its position in the competitive Chinese electric vehicle (EV) market, Tesla Inc. has announced a strategic partnership with Chinese AI companies DeepSeek and Doubao. This collaboration involves integrating new AI capabilities into Tesla's vehicles in China, marking a departure from the company's global AI strategy.

The partnership will see Doubao handling voice command-related functions such as temperature control, navigation, and in-car entertainment, while DeepSeek will manage AI interactions within the vehicles. Both AI models will be hosted on ByteDance's Volcano Engine cloud service, ensuring localized processing and data management [1].

This strategic shift comes at a critical time for Tesla in China. The company has experienced a decline in deliveries from its Shanghai factory, with July shipments down 8.4% compared to the previous year [2]. The integration of local AI technologies is seen as a potential strategy to boost Tesla's appeal in the Chinese market.

Tesla's move aligns with a broader trend of foreign automakers partnering with domestic suppliers to offer more localized experiences for Chinese drivers. For instance, BMW has deepened its partnership with Alibaba Group, introducing the QWen large language model to its China-specific lineup [1].

The decision to use DeepSeek and Doubao in China, rather than Tesla's US-based Grok AI, likely stems from legal and regulatory requirements in China [2]. This underscores the challenges faced by international companies in navigating China's tech landscape and data regulations.

This partnership marks a departure from Tesla's global AI strategy. In most markets, Tesla vehicles use the Grok large language model developed by xAI [3]. The use of different AI models in China highlights the company's flexibility in adapting to local market conditions and regulatory environments.

Tesla's collaboration with DeepSeek and Doubao reflects the growing importance of AI in the automotive sector. It also demonstrates the competitive nature of the Chinese EV market, where advanced tech features are becoming increasingly crucial for attracting consumers [1].

While it's unclear if these AI models have already been integrated into Tesla's Chinese vehicles, the move signals Tesla's commitment to enhancing its competitiveness in China [2]. As the AI race in the automotive sector intensifies, such partnerships may become more common, potentially reshaping the global landscape of in-car AI technologies.

This development also raises questions about data privacy, localization of AI technologies, and the future of global tech companies operating in China's regulated tech environment. As Tesla navigates these challenges, its success or failure could provide valuable insights for other international companies looking to compete in the Chinese market.

References:
[1] https://theoutpost.ai/news-story/tesla-partners-with-deep-seek-and-doubao-for-ai-integration-in-chinese-market-19419/
[2] https://www.cryptopolitan.com/tesla-taps-deepseek-doubao-for-ai-assistant/