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This Cruise in San Francisco seemingly could not figure out how to pull aside on a narrow street to let a buss pass.

Matt Rosoff, CNBC

Cruise CEO and founder Kyle Vogt posted comments on Hacker News on Sunday responding to allegations that his company’s robotaxis aren’t really self-driving, but instead require frequent help from humans working in a remote operations center.

First, Vogt confirmed that the General Motors-owned company does have a remote assistance team, in response to a discussion under the header, “GM’s Cruise alleged to rely on human operators to achieve ‘autonomous’ driving.”

The CEO wrote, “Cruise AVs are being remotely assisted (RA) 2-4% of the time on average, in complex urban environments. This is low enough already that there isn’t a huge cost benefit to optimizing much further, especially given how useful it is to have humans review things in certain situations.”

CNBC confirmed with Cruise spokesperson Tiffany Testo that the comments were accurate and came from the company’s CEO.

Cruise recently took the drastic move of grounding all of its driverless operations following a collision that injured a pedestrian in San Francisco on October 2. The collision and Cruise’s disclosures around it led to state regulators stripping the company of its permits to operate driverless vehicles in California, unless there is a driver aboard.

The DMV previously said its decision was based on several factors, citing four regulations that allow suspension in the event “the Department determines the manufacturer’s vehicles are not safe for the public’s operation,” and “the manufacturer has misrepresented any information related to safety of the autonomous technology of its vehicles.”

As NBC News previously reported, California Department of Motor Vehicles accused Cruise of failing to show them a full video depicting the October 2 collision, during which a pedestrian was thrown into the path of the Cruise robotaxi by a human driver in a different car who hit her first.

During that incident, Cruise previously told NBC, its vehicle “braked aggressively before impact and because it detected a collision” but then tried to pull over and in the process pulled the pedestrian forward about 20 feet. 

Rival Waymo, which is owned by Google parent company Alphabet, continues to operate in the city.

How often do remote workers intervene?

A New York Times story followed last week diving into issues within Cruise that may have led to the safety issues, and setback for Cruise’s reputation and business. The story included a stat that at Cruise, workers intervened to help the company’s cars every 2.5 to five miles.

Vogt explained on Hacker News that the stat was a reference to how frequently Cruise robotaxis initiate a remote assistance session.

He wrote, “Of those, many are resolved by the AV itself before the human even looks at things, since we often have the AV initiate proactively and before it is certain it will need help. Many sessions are quick confirmation requests (it is ok to proceed?) that are resolved in seconds. There are some that take longer and involve guiding the AV through tricky situations. Again, in aggregate this is 2-4% of time in driverless mode.”

CNBC asked Cruise to confirm and provide further details on Monday.

The Cruise spokesperson wrote in an e-mail, that a “remote assistance” session is triggered roughly every four to five miles, not every 2.5 miles, in Cruise’s driverless fleet.

“Often times the AV proactively initiates these before it is certain it will need help such as when the AV’s intended path is obstructed (e.g construction blockages or detours) or if it needs help identifying an object,” she wrote. “Remote assistance is in session about 2-4% of the time the AV is on the road, which is minimal, and in those cases the RA advisor is providing wayfinding intel to the AV, not controlling it remotely.”

CNBC also asked Cruise for information about typical response time for remote operations, and how remote assistance workers at Cruise are trained.

“More than 98% of sessions are answered within 3 seconds,” the spokesperson said.

She added, “RA advisors undergo a background check and driving record check and must complete two weeks of comprehensive training prior to starting, consisting of classroom training, scenario-based exercises, live shadowing and knowledge-based assessments. Advisors also receive ongoing training and undergo supplemental training whenever there is a new feature or update. Regular reviews, refreshers and audits are conducted to ensure high performance.”

As far as the ratio of remote assistance advisors to driverless vehicles on the road, the Cruise spokesperson said, “During driverless operations there was roughly 1 remote assistant agent for every 15-20 driverless AVs.”

George Mason University professor and autonomous systems expert Missy Cummings, who was previously a safety advisor to the federal vehicle safety agency (NHTSA), told CNBC that whether or not the public still considers Cruise vehicles self-driving, it has been an “industry standard” for humans to be on call, monitoring the operations of drones, robotics, and now autonomous or semi-autonomous vehicles.

“I start to get concerned,” she said, “about how we’re using humans when we are using them. In other domains, we’ve seen issues where, for example, an air traffic controller maybe fell asleep on the job.”

Cummings also said it would be very important to understand whether Cruise vehicles involved in any collisions — especially in the October pedestrian collision — called back to remote operations for help. “I would like to know whether a human was notified at all and what the human’s actions were in the remote operations center.”

Cruise declined to say whether the October 2 incident triggered a remote assistant call, whether a human advisor made decisions to authorize the vehicle’s movement, or whether any Cruise employee had called 911.

The company spokesperson said, “We have initiated third-party reviews of the October 2 incident and are working with NHTSA on their investigation as well. In respect of those processes, we will await the findings of those reviews before commenting further.”

GM said last month that the company has lost roughly $1.9 billion on Cruise in the first nine months of this year, including $732 million in the third quarter alone.

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Cramer slams Amazon for considering a circular AI deal reminiscent of the dotcom bubble

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Cramer slams Amazon for considering a circular AI deal reminiscent of the dotcom bubble

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Amazon says AI chief Rohit Prasad is leaving, Peter DeSantis to lead ‘AGI’ group

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Amazon says AI chief Rohit Prasad is leaving, Peter DeSantis to lead 'AGI' group

Rohit Prasad, Senior VP & Head Scientist for Alexa, Amazon, on Centre Stage during day one of Web Summit 2022 at the Altice Arena in Lisbon, Portugal.

Ben McShane | Sportsfile | Getty Images

Rohit Prasad, a top Amazon executive overseeing its artificial general intelligence unit, is leaving the company at the end of this year, the company confirmed Wednesday.

As part of the move, Amazon CEO Andy Jassy said the company is reorganizing the AGI unit under a more expansive division that will also include its silicon development and quantum computing teams. The new division will be led by Peter DeSantis, a 27-year veteran of Amazon who currently serves as a senior vice president in its cloud unit.

This is breaking news. Please refresh for updates.

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Oracle stock dips 5% on report Blue Owl Capital won’t back $10 billion data center

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Oracle stock dips 5% on report Blue Owl Capital won't back  billion data center

Blue Owl decided not to pursue Oracle’s $10 billion Michigan data center, source familiar

Oracle stock dipped about 5% on Wednesday following a report that discussions with Blue Owl Capital on backing a $10 billion data center in Michigan had stalled, although the cloud company later disputed the report.

Blue Owl had been in talks with Oracle about funding a 1-gigawatt facility for OpenAI in Saline Township, Michigan, according to the Financial Times.

However, the plans fell through due to concerns about Oracle’s rising debt levels and extensive artificial intelligence spending, the FT reported, citing people familiar with the matter.

This comes as some investors raise red flags about the funding behind the rush to build ever more data centers.

The concern is that some hyperscalers are turning to private equity markets rather than funding the buildings themselves, and entering into lease agreements that could prove risky.

Blue Owl did look into the project, but pulled out due to unfavorable debt terms and the structure of repayments, according to a person familiar with the company’s plans who asked not to be named in order to discuss a confidential matter.

Blue Owl is still involved in two other Oracle sites, the person said.

The person added that Blue Owl was also concerned that local politics in Michigan would cause construction delays.

Oracle later responded to the FT report, saying the project was moving forward and that Blue Owl was not part of equity talks.

“Our development partner, Related Digital, selected the best equity partner from a competitive group of options, which in this instance was not Blue Owl. Final negotiations for their equity deal are moving forward on schedule and according to plan,” Oracle spokesperson Michael Egbert said in a statement.

The cloud company did not name the firm involved in current equity talks for the project.

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CNBC has reached out to the FT for comment.

The FT said that Blackstone is in discussions to potentially replace Blue Owl Capital as a financial partner for the data center, although no deal has been signed yet.

Blue Owl Capital has been the primary investor in Oracle’s data center projects in the U.S., including a $15 billion center in Abilene, Texas, and an $18 billion site in New Mexico, the FT said.

“This appears to be a case where the deal simply wasn’t the right one, and seasoned investors understand that success does not require winning every transaction,” Evercore ISI analysts wrote in a note on Wednesday.

The bank added that digital infrastructure remains a “core growth vertical” for the Blue Owl, noting an upcoming digital infrastructure fund in 2026 that would add to its $7 billion fund announced in May.

Oracle has $248 billion in lease commitments for data centers and cloud capacity commitments over the next 15 to 19 years as of Nov. 30, the company said in its latest quarterly filing. That is up almost 148% from August.

In September, the cloud computing giant raised $18 billion in new debt, according to an SEC filing. That same month, OpenAI announced a $300 billion partnership with Oracle over the next five years.

By the end of November, the company owed over $124 billion, including operating lease liabilities, according to the filing.

Oracle shares are down about 50% from the high of $345.72 reached in September.

Read the full FT story here.

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