Here’s why China has been testing its autonomous car technology in the U.S. for years

Published

5 months ago

October 23, 2024

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Chinese companies are aggressively developing autonomous vehicles. In August, China announced that it had issued 16,000 test licenses for driverless cars and opened up about 20,000 miles of roads nationwide for autonomous vehicle testing.

But Chinese autonomous vehicle companies have also quietly been testing their technology on U.S. streets.

Baidu, Didi, WeRide, Pony.ai and AutoX all have offices in northern California, right alongside many U.S. autonomous car outfits. Collectively, these five companies logged over 1.6 million test miles on California’s roads between 2017 and 2023, according to data from the California Department of Motor Vehicles, which is responsible for issuing test licenses for companies aiming to test autonomous cars in the state. Out of these five companies, Didi, is the only one that no longer has an active AV testing permit according to the DMV’s website.

Michael Dunne, CEO and founder of consulting firm Dunne Insights, told CNBC that China had “carte blanche” when it comes to testing AVs in California.

“They recognized that Silicon Valley was the cradle of autonomous vehicle technology,” Dunne said, adding, “They hired a lot of people who had previously been working for Apple or Tesla or Waymo or Cruise and said, ‘Let’s get the best talent in the world. We have funding, and we want to build a world-class company. Take that knowledge, bring it back to China, apply it to our massive home market, and we’re off and running.'”

But now, concerns about the massive amount of data being collected by these cars and the potential implications for national security have led the U.S. government to propose a ban on Chinese connected vehicles.

Missy Cummings, a former senior safety advisor to the National Highway Traffic Safety Administration, told CNBC the ban was a good start.

“These vehicles are very much surveillance machines,” Cummings said. “They have multiple cameras looking at everything from many different angles, and they can do the same pattern every day, over and over and over again, under the guise of testing.”

Cummings added that the vehicles gather “critical information that may not seem confidential, but certainly is sensitive, about patterns of life, about vehicles that go in and out of certain installations, about how we actually do supply chains.”

Representative Marc Veasey of Texas told CNBC he is also concerned. Last year, he and three other representatives wrote a letter to the Biden administration, detailing their fears that Chinese autonomous vehicles operating in the U.S. pose threats to national security and competitiveness.

Feeling the increased scrutiny, Chinese autonomous car companies have been pulling back from the U.S.

At the peak of Chinese AV testing, Dunne told CNBC there were more than 14 companies testing their vehicles in California, Nevada and Utah, but today, Dunne said he sees “very little evidence or intention among Chinese autonomous vehicle makers to launch products in the United States.”

“There’s a recognition,” he said. “‘Oh, we had a nice run in the United States. We learned a lot. From here forward, maybe we have enough that we can build our own innovation inside China.'”

Watch the video to find out more about how these AV companies are testing their vehicles on California’s roads and what impact the increased scrutiny around Chinese connected vehicles could mean for the industry in the future.

Technology

Spotify says it paid nearly 1,500 artists $1 million or more in royalties for 2024 streams

Published

2 hours ago

March 12, 2025

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Spotify says it paid nearly 1,500 artists million or more in royalties for 2024 streams

In this photo illustration, the Spotify music app is seen on a phone on June 04, 2024 in New York City.

Michael M. Santiago | Getty Images

Spotify is minting music millionaires.

Nearly 1,500 artists generated over $1 million in royalties from Spotify in 2024, the company said Wednesday in its annual Loud and Clear Report.

Spotify said more than 80% of the artists in that pool didn’t have a song reach the app’s Global Daily Top 50 chart.

“Spotify has helped level the playing field for artists at every stage of their careers,” read a portion of the report. “Success in the streaming era doesn’t require a decade-spanning catalog nor a chart-topping hit.”

The news comes about a month after the company reported a fourth-quarter earnings beat that saw the Swedish music streamer record its first full year of profitability. The company said it paid an all-time high of $10 billion in royalties to the music industry for the year.

Technology

Salesforce pledges to invest $1 billion in Singapore over five years in AI push

Published

16 hours ago

March 12, 2025

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Salesforce pledges to invest billion in Singapore over five years in AI push

Marc Benioff, Chairman & CEO of Salesforce, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22nd, 2025.

Gerry Miller | CNBC

Salesforce on Wednesday announced plans to invest $1 billion in Singapore over the next five years.

The cloud software giant said the investment is designed to accelerate the country’s digital transformation and the adoption of Salesforce’s flagship AI offering Agentforce.

Salesforce is among the many technology companies hoping to boost revenue with generative AI features.

The company launched the newest version of Agentforce last month. It has previously described the system — which it says can tackle sophisticated questions in Salesforce’s Slack communications app, based on all available data — as the first digital AI platform for enterprises.

Salesforce CEO Marc Benioff is scheduled to speak at CNBC’s CONVERGE LIVE at around 9:25 a.m. Singapore time (9:25 p.m. ET) on Wednesday.

“We are in an incredible new era of digital labor where every business will be transformed by autonomous agents that augment the work of humans, revolutionizing productivity and enabling every company to scale without limits,” Benioff said in a statement.

“Singapore is at the forefront of this shift, and as the world’s largest provider of digital labor through our Agentforce platform,” he added.

Salesforce said Agentforce can help Singapore to “rapidly expand” its labor force in several key service and public sector roles at a time when the country is grappling with an aging population and declining birth rates.

Jermaine Loy, managing director of the Singapore Economic Development Board, welcomed Salesforce’s investment, saying it will help to boost the country’s efforts “to build a vibrant hub for AI innovation.”

— CNBC’s Jordan Novet contributed to this report.

Technology

Reddit rallies after three-day slump as analyst calls sell-off ‘excessive’

Published

22 hours ago

March 11, 2025

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Reddit rallies after three-day slump as analyst calls sell-off 'excessive'

Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.

Spencer Platt | Getty Images News | Getty Images

Reddit shares rose more than 10% on Tuesday, reversing a three-day slump that coincided with a broader decline among technology companies.

Despite Tuesday’s gains, Reddit shares are still roughly 30% below the close on Wednesday.

Reddit’s stock market upswing was likely bolstered by a Loop Capital analyst note published Tuesday that reiterated a buy rating and characterized the company’s shares as “extremely attractive.” The analyst note said that Reddit’s 50% drop on Wall Street in the past month “is excessive,” and that the social media company “has the biggest upside potential relative to Street estimates in our coverage universe.”

The company’s shares dropped more than 15% in February after the company reported weaker-than-expected fourth-quarter user numbers as a result of a Google search change that temporarily hurt its search-derived traffic. Although Reddit said at the time that it had recovered from the algorithmic shift, the user number miss spooked investors.

Reddit’s shares have since spiraled downward along with other tech companies like Apple, Nvidia and Tesla off of concerns related to President Donald Trump‘s tariffs and growing fears of a recession. The seven most valuable tech companies lost more than $750 billion in market value on Monday with Nasdaq experiencing its biggest decline since 2022.

Loop Capital managing director Alan Gould acknowledged in the note that investors are operating in a “risk-off market environment,” but he contended that Reddit “has been one of the top performing stocks over the past year,” aside from its most recent dip.

“RDDT wildly exceeded ours and Street estimates for 2024, which explains why the stock increased almost 7-fold from a $34 IPO price to a peak of $230 in less than a year,” Gould wrote, noting Reddit’s growing revenue and improved advertising tools, among other positive developments.

Reddit’s fourth-quarter sales grew 71% year over year to $428 million, which represents the fastest growth rate for any quarter since 2022.

“In our view, RDDT deserves the revaluation it had experiencing based on the growth it has shown in the recent earnings reports and future projected growth driven by the ability to narrow the ARPU gap, and data licensing possibilities,” Gould wrote.