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Roadrunner and Wile E Coyote
The never-ending chase (BSR Agency/Getty Images)
MEEP-MEEP

YouTuber runs a Tesla through a fake wall to poke a hole in its camera-only, no-lidar strategy

The Tesla ran straight into a wall painted to look like its surroundings. A non-Tesla with lidar stopped easily.

Jon Keegan

In the classic “Looney Tunes” cartoons, the Road Runner is constantly evading capture by the tireless Wile E. Coyote, who sets elaborate (and fruitless) traps to snare the clever bird. One of the most famous tricks Wile E. conjured was to paint a fake tunnel on a rock wall, hoping the Road Runner’s eyes would be fooled and he would smash into the wall.

It turns out this trick appears to work on Teslas.

Former NASA engineer turned YouTuber Mark Rober published a new video over the weekend that tests a camera-only Tesla against a lidar-equipped vehicle to see how the Tesla’s “autopilot” braking system responds to the optical illusion of a wall thats camouflaged to look like a seamless view of the road ahead.

About 10 years ago, as CEO Elon Musk was seeking to cut down on the costs of Teslas, he make a radical decision to use only visible-light cameras for monitoring objects in the road ahead, as opposed to the more costly, but more accurate, lidar systems. Lidar (light detection and ranging) — which is used on Alphabet’s Waymo self-driving cars — shoots out infrared lasers that can detect objects in the dark, through fog, and in other conditions that would obstruct visible light.

At the time, Musk defended his decision to go all in with visible light cameras by pointing to the power of AI to detect pretty much any object on the road, thanks to its firehose of training data, which it collects from millions of connected Tesla vehicles on the road.

But recent reports have called attention to what appear to be failings of the camera-only system in a series of accidents that have led to multiple injuries and even a death.

Rober’s video presents an easy-to-understand, powerful illustration of Tesla’s potential limitations when it encounters such obstructions in the road. Rober’s tests also showed that the camera-only system had a hard time seeing a dummy of a child in heavy fog and a deluge of water (which, to be fair, you would probably never experience unless you were driving under a waterfall, similar to the idea that you probably won’t encounter a wall thats painted to look like its surroundings).

Rober’s Tesla did stop safely in a few of his tests. It stopped when a stationary child dummy was in the center of the road in plain daylight, when the dummy popped out from behind a vehicle, and when the dummy was backlit with extremely bright floodlights.

Tesla has been on a downswing of late, as the stock has lost half its value in the past three months, sales are dropping alarmingly in Europe, and Musk’s DOGE side quest appears to be consuming all of his time and attention.

Tesla shares were down more than 5% today.

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Apple poaches Meta’s chief legal officer

Just a day after Meta announced that it had hired away Apple’s user interface design lead, Apple has announced that it’s poached Jennifer Newstead, Meta’s chief legal officer, to become Apple’s new general counsel. Kate Adams, Apple’s general counsel since 2017, will be retiring late next year.

Apple also announced the retirement of Lisa Jackson, vice president for Environment, Policy, and Social Initiatives, who will leave the company in late January 2026.

The flurry of high-level management changes at Apple happens amid fervent speculation that CEO Tim Cook may be retiring soon.

Apple also announced the retirement of Lisa Jackson, vice president for Environment, Policy, and Social Initiatives, who will leave the company in late January 2026.

The flurry of high-level management changes at Apple happens amid fervent speculation that CEO Tim Cook may be retiring soon.

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EU calls for bids to build “AI gigafactories” in 2026

The European Union wants to shore up its domestic AI infrastructure and reduce its dependence on American tech companies.

To further this goal, the bloc is planning on accepting bids to build EU-based “AI gigafactories,” according to a report from The Wall Street Journal.

EU Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen announced that bids would begin in January or February, per the report.

As the AI arms race heats up, countries are racing to secure their own sovereign AI infrastructure, including building their own AI models that reflect their culture and language and offer control over cloud computing resources.

Europe is lagging behind the US and Asia in AI infrastructure. But it may be hard for the EU to fully break free of American tech — unlike the US and China, there is no European alternative for the powerful GPUs needed to train and run AI models. It’s very likely that any AI gigafactories in the EU will be filled with GPUs from Nvidia.

EU Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen announced that bids would begin in January or February, per the report.

As the AI arms race heats up, countries are racing to secure their own sovereign AI infrastructure, including building their own AI models that reflect their culture and language and offer control over cloud computing resources.

Europe is lagging behind the US and Asia in AI infrastructure. But it may be hard for the EU to fully break free of American tech — unlike the US and China, there is no European alternative for the powerful GPUs needed to train and run AI models. It’s very likely that any AI gigafactories in the EU will be filled with GPUs from Nvidia.

tech

Google’s AI chip business could be a $900 billion boon for the company

Google may be sitting on a massive new business that it has yet to fully exploit.

Google’s custom tensor processing unit (TPU) AI chips have been getting a lot of attention recently, making the tech world wonder if there are other ways to power its AI dreams rather than just by using Nvidia’s GPUs.

Bloomberg spoke with analysts who estimate that, if it does decide to sell its chips to others, Google could capture 20% of the AI market, making it a $900 billion business. For comparison, Google Cloud pulled in $43.2 billion of revenue last year.

Even if Google just sticks with renting access to its TPUs, it will continue to drive down costs and increase margins as it ekes out performance improvements, such as the 30x improvement in power efficiency that the latest generation of TPUs has delivered for the company.

Bloomberg spoke with analysts who estimate that, if it does decide to sell its chips to others, Google could capture 20% of the AI market, making it a $900 billion business. For comparison, Google Cloud pulled in $43.2 billion of revenue last year.

Even if Google just sticks with renting access to its TPUs, it will continue to drive down costs and increase margins as it ekes out performance improvements, such as the 30x improvement in power efficiency that the latest generation of TPUs has delivered for the company.

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OpenAI’s Sam Altman has explored bringing his feud with Tesla’s Elon Musk to space

Billionaires, they’re just like us: they want to bring their terrestrial beefs to outer space.

OpenAI CEO Sam Altman has explored buying or partnering with a rocket company to compete with Tesla CEO Elon Musk’s SpaceX, The Wall Street Journal reports. The two billionaires have had numerous public feuds over the years that have played out in the courts and on social media. They also both lead AI companies that have insatiable needs for data centers and have publicly discussed building data centers in space.

Altman seems like he thinks this could be more than science fiction. He reportedly reached out to rocket maker Stoke Space to potentially make equity investments in the company to get a controlling stake, though the talks are no longer active, WSJ reports.

Or perhaps he just wanted a Sherwood bobblehead of himself.

tech

Report: Meta to slash metaverse, VR spending by up to 30%

Four years after changing its name to reflect its focus on the loosely defined “metaverse,” Meta is planning deep cuts to the company’s money-losing virtual reality efforts, according to a report from Bloomberg.

Meta’s Reality Labs division, home to the teams working on metaverse products — which include Quest VR headsets, Horizon Worlds, and its Ray-Ban Meta glasses — has lost about $70 billion since the company started breaking out the unit in 2020.

The company has struggled to get consumers to buy into CEO Mark Zuckerberg’s vision of working and playing in virtual reality worlds, like the company’s Horizon Worlds platform.

Investors seem to love the news of the pivot, as shares shot up as much as 5% in early trading.

Meta’s recent hiring spree of AI superstars from competitors for its Meta Superintelligence Labs shows that the company’s attention is now all in on AI.

Meta’s Reality Labs division, home to the teams working on metaverse products — which include Quest VR headsets, Horizon Worlds, and its Ray-Ban Meta glasses — has lost about $70 billion since the company started breaking out the unit in 2020.

The company has struggled to get consumers to buy into CEO Mark Zuckerberg’s vision of working and playing in virtual reality worlds, like the company’s Horizon Worlds platform.

Investors seem to love the news of the pivot, as shares shot up as much as 5% in early trading.

Meta’s recent hiring spree of AI superstars from competitors for its Meta Superintelligence Labs shows that the company’s attention is now all in on AI.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.