Tesla has opened an AI training centre in China to speed up development of its Full Self-Driving (FSD) software. Grace Tao, Tesla's vice-president, told Shanghai news outlet Cailian that the centre has enough computing power to improve assisted-driving features. She did not reveal the exact location or investment amount. Yin Ran, a Shanghai angel investor, said, "Chinese fans of autonomous driving will benefit from intensified competition between Tesla and its local rivals." He added, "As thousands of L3 cars are likely to hit China’s roads in 2026, a new battle will take shape as all electric-car builders try to deliver efficient and affordable self-driving systems." Tesla’s FSD uses neural network technology. It trains AI using video clips from real driving to help cars make human-like decisions. David Zhang, secretary general of the International Intelligent Vehicle Engineering Association, called Tesla's system a global leader. Tesla faces challenges in China. It cannot transfer data collected on Chinese roads to the US. Also, US laws stop Tesla from training its AI software inside China. Despite these limits, Tesla's new centre highlights its push to lead in autonomous driving in the world's biggest EV market.