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Elon Musk's latest blending of business interests puts his Grok AI chatbot in Teslas—and raises questions around data and privacy
Elon Musk's latest blending of business interests puts his Grok AI chatbot in Teslas—and raises questions around data and privacy

Yahoo

time4 days ago

  • Automotive
  • Yahoo

Elon Musk's latest blending of business interests puts his Grok AI chatbot in Teslas—and raises questions around data and privacy

This week, owners of Tesla cars learned that they were getting a freebie: Starting July 12, all new Tesla vehicles have automatically had the Grok AI chatbot installed and available to use. Grok, of course, is the chatbot created by xAI, the privately-held AI company launched two years ago by Tesla CEO Elon Musk. Like a gas station offering a free car wash with a fill-up, Musk appears to be leveraging his various assets and business endeavors to give customers extra value. In this case, however, it's fair to wonder who is getting more value out of this 'gift,' which further intertwines Musk's businesses. With the update, Grok is now a button on the Tesla in-car display's homescreen. Users can ask it questions or give it tasks to perform, just like they would with any other LLM, be it OpenAI's ChatGPT or Google's Gemini. For now, Grok cannot control any vehicle functions like windows or AC, but it's not hard to imagine users coming up with plenty of handy uses for an in-car LLM, from responding to an email to summarizing a book. The new arrangement between Tesla and xAI will likely make Tesla a significant customer for xAI, though neither company has disclosed any financial details surrounding the partnership. For reference, Tesla sold nearly 1.8 million vehicles just last year, meaning that this new partnership will open the door for millions of customers to start using Grok. Should even a small percentage of new Tesla owners utilize the feature, it could ramp up computing costs for xAI, which is already reportedly spending some $1 billion a month to build out its data centers and buy up enough computer chips to compete with other AI companies. But it's important to think about what data sharing may occur now that Grok is installed in Tesla vehicles. In disclosures, Tesla says that driver conversations with Grok will be 'securely processed by xAI' in line with xAI's privacy policy, noting that conversations will be anonymized and not linked to individual vehicles. A look at xAI's privacy policy says the company collects personal information, user content, social media information, and other data points for its service and that it will share data with contracted service providers, its 'related companies,' and to third-parties customers choose to share information with. But what exact data will xAI get access to when Grok is used in vehicles? Elon Musk has suggested a 'wake-word' will be added, but will that limit which snippets of conversation it captures, or does it listen to everything said in the car once it's been activated via the homescreen? And conversations are just part of the data that's out there. After all, automobiles have become some of the most powerful data-collecting devices in day-to-day life. Vehicles contain multiple computers and sensors, with some estimates indicating that they generate about 25 gigabytes of data every hour—data that could be particularly valuable to a company with a large language model to train. Tesla discloses in its own privacy policy that it uses vehicle data for its own self-driving AI models, and it allows customers to download copies of the data that it collects for themselves. But Tesla doesn't go into specifics about which data it uses for what purpose, and it hasn't updated its privacy policy since the July 12 addition of Grok so it's unclear how conversations may be used. Tesla and xAI did not respond to requests for comment. 'This is part of a larger trend we see within the automotive industry,' says Albert Cahn, executive director of the Surveillance Technology Oversight Project, a public interest, advocacy, and legal services organization focused on how technology can be used to target individuals. 'Cars have been transformed from this emblem of independence on the open road to the most heavily monitored parts of our lives. There is a huge amount of risk that the data that is collected in the privacy of our own cars will be used against us, whether by law enforcement or immigration officials or simply being monetized without our consent.' Tesla vehicles, specifically, have series of cameras and they collect data from video and camera feeds, ultrasonic sensor data, GPS and location information, vehicle telemetry data such as speed, battery use, and odometer readings, event logs like collisions or breaking data, and user interaction data—data that Tesla has provided to government authorities to find criminals or assist law enforcement with investigations. It's unclear whether conversations with Grok may be permissible to use in investigations as well. Particularly as vehicles are installed with more cameras and sensors for self-driving capabilities, more and more data points are being collected from drivers, Cahn says. 'These companies are quick to claim that our data is being anonymized, but it's really hard to actually anonymize this sort of information in a way where it can't be re-identified,' he says. Every new technology comes with privacy trade-offs, of course. The GPS that gives you directions also leaves digital footprints that reveal your wanderings and whereabouts. As the person behind some of today's most popular tech products—from EV, self-driving tech, and LLMs to social media and Starlink internet satellites—Musk appears increasingly intent on fusing and intermingling the various components of his business empire to give consumers something new and unique. It will be up to consumers to decide if the trade-offs are worth it. 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Tesla Tries to Save the Cybertruck With Its Most Desperate Offer Yet
Tesla Tries to Save the Cybertruck With Its Most Desperate Offer Yet

Gizmodo

time5 days ago

  • Automotive
  • Gizmodo

Tesla Tries to Save the Cybertruck With Its Most Desperate Offer Yet

Less than two years after its hyped-up debut, Tesla is making an aggressive, almost desperate, move to salvage the Cybertruck, a vehicle widely seen as one of the biggest busts in recent automotive history. Faced with production woes, quality control nightmares, and underwhelming sales, the company has added its polarizing truck to a massive sales event, offering a powerful incentive it has historically reserved for its most loyal customers: a free transfer of its $12,000 Full Self-Driving (FSD) software. It's a stunning concession and a clear signal that the company is willing to sacrifice a significant revenue stream to get the angular, stainless-steel behemoths off of lots and onto the road. The offer, quietly added to Tesla's 'Current Offers' page, allows existing Tesla owners who have already purchased FSD to transfer that capability to a new Cybertruck, free of charge. For years, FSD was locked to the vehicle, not the owner. Making it transferable has been the single most requested feature from Tesla's loyal fanbase, and until now, the company had only offered it for its high-volume Model 3, Y, S, and X vehicles during brief promotional periods. Adding the Cybertruck to that list is a strategic gamble. On one hand, it's a powerful lure for the thousands of dedicated Tesla owners who might be on the fence about the unconventional truck. On the other, it's an admission that the Cybertruck cannot sell on its own merits. Tesla's Cybertruck Is a Bust The move comes amid a broader sales blitz as Tesla braces for the September 30 expiration of the $7,500 federal EV tax credit. The company is offering deep inventory discounts and 10,000 free Supercharging miles across its lineup. But the Cybertruck's inclusion in the FSD transfer promotion is unique, targeting the only group of people who might still be interested: the Tesla faithful. Since its launch, the Cybertruck has been plagued by problems. Early models were criticized for inconsistent panel gaps, susceptibility to rust spots, and a host of software glitches. More importantly, its radical design and high price point have failed to attract mainstream truck buyers, who continue to flock to established models like the Chevrolet's Silverado EV, which leans into a more conventional design. While Tesla does not release specific sales figures for the Cybertruck, industry analysts and registration data suggest that deliveries have fallen far short of initial projections. The truck is a rare sight on American roads, a far cry from the ubiquitous presence of the Model Y or Model 3. In the second quarter of 2025, Tesla sold just 4,306 Cybertrucks, down a staggering 50.8% from the 8,755 units it delivered during the same period last year, according to new data from Kelley Blue Book. By offering the FSD transfer, Tesla is essentially subsidizing the Cybertruck with its most profitable product. It's a short-term solution to a long-term problem: how do you sell a vehicle that the market seems to have rejected? For now, the answer appears to be leaning on the loyalty of existing customers and giving away the family jewels to close the deal. Whether it's enough to turn the tide for the beleaguered truck remains to be seen.

Tesla implements Grok AI chatbot into vehicles
Tesla implements Grok AI chatbot into vehicles

Yahoo

time15-07-2025

  • Automotive
  • Yahoo

Tesla implements Grok AI chatbot into vehicles

(KRON) — Tesla owners are used to updating their vehicle's software every few weeks or so. Updates are usually minor and don't generally alter the overall driving experience. However, this latest update might just be a different story. Grok, an artificial intelligence system developed by Tesla CEO Elon Musk, is now available to use with the latest software update, according to emails sent to Tesla owners Monday. Tesla posted a demo video on X of what the Grok integration would look like with the user voice command. Tesla announced on social media Saturday that it would roll out the Grok tool for its vehicles in the United States. The automaker said vehicle owners do not need a Grok subscription to enable the chatbot inside the car. However, not every Tesla owner will be able to have Grok available to them. The AI chatbot will be available to vehicles delivered on or after July 12 or meet the following criteria, according to Tesla. An AMD processor A Model S, Model 3, Model X, Model Y or Cybertruck Vehicle software version 2025.26 Premium Connectivity or Wi-Fi connection This Tesla vehicle continues dominance in CA sales for third straight year Tesla robotaxi service coming to Bay Area 'in a month or two,' according to Musk Emails were sent to Tesla owners on Monday, informing them that their vehicle's latest software update will give them the ability to use the AI system. 'Just ask AI,' the email read. 'Press and hold the voice button on your Tesla vehicle's steering wheel and start talking. Ask Grok for news headlines, information on a topic you're curious about or a story for your kids where they're the main characters,' Tesla wrote in the email. 'To enable, open App launcher on your vehicle's touchscreen and tap Grok. The email sent to Tesla owners comes on the same day Grok landed a nine-figure deal with the United States Department of Defense (DOD). The federal agency's contact with the AI chatbot is worth $200 million. The DOD also awarded competitors, such as OpenAI and Google, a similar contract. Grok is a Musk-backed artificial intelligence tool that is widely seen on his social media app X. Grok's X account has more than 5 million followers. 'Grok is your AI companion, an advanced artificial intelligence built by xAI and now, is available in Tesla vehicles,' Tesla said on its website. 'Grok is designed to deliver accurate and insightful responses to questions of a wide range.' More information about Grok and its integration into Tesla vehicles can be viewed on the automaker's website. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Tesla to expand robotaxis to San Francisco area within two months, Musk says
Tesla to expand robotaxis to San Francisco area within two months, Musk says

Reuters

time10-07-2025

  • Automotive
  • Reuters

Tesla to expand robotaxis to San Francisco area within two months, Musk says

SAN FRANCISCO, July 9 (Reuters) - Tesla (TSLA.O), opens new tab will expand its robotaxi service to the San Francisco Bay Area "in a month or two", depending on regulatory approvals, CEO Elon Musk said on Wednesday. Tesla last month rolled out a test of the long-promised service in a limited area of Austin, Texas, with about a dozen vehicles, a select group of passengers and many restrictions, including a safety monitor in the front passenger seat. Tesla will expand the service to "a larger area in Austin this weekend," Musk said on his social media platform X in response to a post from a user about the lack of an update on expansion. Musk did not specify the location or size of the expansion. Another X user - Tesla Owners Silicon Valley - then asked about an expansion to the Bay Area, and Musk replied, "Waiting on regulatory approvals, but probably in a month or two." The successful expansion of robotaxis will be crucial to Tesla's future as sales of its aging lineup of electric vehicles have slumped amid rising competition and a backlash against Musk's embrace of far-right political views. Much of the company's trillion-dollar valuation hangs on Musk's bet on robotaxis and humanoid robots that are powered by artificial intelligence. Commercializing autonomous vehicles has been harder than anticipated with high costs, tight regulations and investigations forcing many, including General Motors' (GM.N), opens new tab Cruise unit, to shut down. Until Tesla's recent rollout, Alphabet's (GOOGL.O), opens new tab Waymo was the only company running driverless robotaxis charging fees from passengers. Waymo with about 1,500 vehicles has been expanding its service cautiously for years and is currently available in San Francisco and other cities in the Bay Area, Los Angeles, Phoenix, Austin and Atlanta. Musk has said Tesla will ramp up the service rapidly to other U.S. cities. But while Tesla faced almost no regulation in Texas, California tightly controls where and how firms can operate autonomous vehicles and requires testing data for permits. In California, Tesla would need a series of permits from the state's Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) to operate a fully autonomous robotaxi service that charges customers. The CPUC in March gave Tesla the first in a series of approvals required to eventually launch the service. The DMV and CPUC did not respond to Reuters' requests for comments outside of regular business hours. Tesla's public test in Austin led to multiple traffic problems and driving issues, social media videos from the company-selected riders showed over the first few days.

Tesla to expand robotaxi service to San Francisco Bay Area within two months, Musk says
Tesla to expand robotaxi service to San Francisco Bay Area within two months, Musk says

CNA

time10-07-2025

  • Automotive
  • CNA

Tesla to expand robotaxi service to San Francisco Bay Area within two months, Musk says

SAN FRANCISCO :Tesla will expand its robotaxi service to the San Francisco Bay Area "in a month or two", depending on regulatory approvals, CEO Elon Musk said on Wednesday. Tesla last month rolled out a test of the long-promised service in a limited area of Austin, Texas, with about a dozen vehicles and many restrictions, including a safety monitor in the front passenger seat. Tesla will expand the service to "a larger area in Austin this weekend," Musk said on his social media platform X in response to a post from another user about the lack of an update on expansion. When Tesla Owners Silicon Valley asked about expansion in the Bay Area, Musk said: "Waiting on regulatory approvals, but probably in a month or two."

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