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.
Jim Cramer implores Amazon not to engage in “sham-like” circular AI deals that remind him of the kind of speculation that fueled the 1990s dotcom bubble that burst more than two decades ago. According to multiple reports on Wednesday, Amazon is in talks about a potential $10 billion investment in OpenAI in exchange for the ChatGPT creator agreeing to use the cloud giant’s custom AI chips. “They really need Trainium chips sold so badly that they give somebody $10 billion to buy them,” Jim said during the Club’s Morning Meeting on Wednesday . “I would love to see them not play this game.” “I really respect Amazon, and this shocks me that they’re willing to put up with this,” Jim said on “Squawk on the Street” earlier Wednesday. “You can’t do these deals. These deals are not real.” Over the past several years, many investors have been sounding the alarm over the growing levels of AI-related spending from megacap hyperscalers to compete in the so-called AI arms race. The push for AI requires the buildout of data centers and high-performance chips to run the systems. Jim said the current spate of interconnected investment activity is similar to deals in the lead-up to the year 2000. “The market is not going to let this happen,” Jim predicted, calling the stock market a “cruel task master,” in a stark warning about excess that drove the tech-heavy Nasdaq to a then-record high in March 2000 and the 78% crash over 2½ years that followed. OpenAI has been on a deal spree in 2025, securing massive amounts of computing power from firms including Nvidia , Advanced Micro Devices , Oracle , and Amazon’s cloud unit. That has amounted to the AI startup making $1.4 trillion in infrastructure commitments in recent months. Jim recently referred to OpenAI’s deal activity as “2000 in a nutshell,” as it continues to make aggressive, leveraged bets, raising concerns about an AI bubble. (Jim Cramer’s Charitable Trust is long AMZN, NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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.
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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.