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Tesla CEO Elon Musk gestures as he visits the construction site of Tesla’s Gigafactory in Gruenheide near Berlin, Germany, August 13, 2021.
Patrick Pleul | Reuters

Tesla CEO Elon Musk on Monday called the latest release of the company’s experimental driver assistance software, FSD Beta 9.2, “actually not great” on Twitter.

Specifically, Musk wrote:

“FSD Beta 9.2 is actually not great imo, but Autopilot/AI team is rallying to improve as fast as possible. We’re trying to have a single stack for both highway & city streets, but it requires massive NN retraining.”

The company sells a Full Self-Driving capability (or FSD) package for $10,000 or $199 per month in the US. This premium driver assistance system does not make Tesla electric vehicles safe for use without an attentive driver behind the wheel.

FSD Beta is available only to some drivers who previously purchased FSD and Tesla employees. The beta version features new or newly revised functionality that is added to the car’s premium driver assistance features.

Drivers usually agree to keep their experiences private, though some public FSD Beta users are allowed to post videos to social media showing off and critiquing the latest features that they have tried on U.S. roads.

Regulators may one day decide to disallow vehicle testing with drivers who are not trained professionals on public roads. But for now, no regulation interferes with Tesla’s ability to turn their customers, and everyone they share the road with, into guinea pigs.

Musk’s critical tweet on Monday came just days after he touted Tesla’s prowess with autonomous systems and components for them at an event called Tesla AI Day.

At that event, last week on Thursday, Tesla showed off a custom chip for training artificial-intelligence networks in data centers. The chips are meant to train models for automatically identifying a variety of obstacles that appear on the road in video feeds recorded by cameras inside Tesla vehicles.

Among other things, FSD today is sold with the promise of enabling a Tesla vehicle to automatically change lanes, navigate on the highway, move into a parking spot, or emerge from one and drive across a small distance to the driver’s side at a slow pace without anyone behind the wheel.

Tesla says later this year FSD will also include the ability to automatically steer on city streets, a long-delayed feature. FSD Beta has included the auto steer on city streets feature, albeit it imperfect and incomplete.

Musk’s critical tweet also follows the launch of a formal investigation into Tesla’s Autopilot system by federal vehicle safety authorities in the US last week.

Autopilot is the basic version of Tesla’s driver assistance system, and today it comes as a standard part of their cars.

Tesla vehicles with Autopilot, or just traffic aware cruise control features engaged, crashed into first responder vehicles at least 11 times in the US, NHTSA found, leaving at least 17 people injured and 1 dead. That prompted the formal probe into whether Autopilot contains safety defects that NHTSA may require Tesla to change.

Additionally, late last week, NTSB’s newly appointed chairwoman Jennifer Homendy, said in an interview with Bloomberg, “Whether it’s Tesla or anyone else, it is incumbent on these manufacturers to be honest in what their technology does and does not do.”

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Amazon’s cloud unit records highest profit margin in at least a decade

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Amazon's cloud unit records highest profit margin in at least a decade

Matt Garman, CEO of Amazon Web Services, speaks during The Wall Street Journal’s Tech Live conference in Laguna Beach, California, on Oct. 21, 2024.

Frederic J. Brown | AFP | Getty Images

Amazon said revenue in its cloud unit increased 19% in the third quarter, just missing analyst estimates.

Revenue at Amazon Web Services totaled $27.45 billion, according to a statement Thursday, while Wall Street was expecting $27.52 billion, based on StreetAccount estimates. Year-over-year growth has accelerated for five consecutive quarters.

The artificial intelligence portion of AWS is in the billions of dollars in annualized revenue, more than doubling year over year, Amazon CEO Andy Jassy, who previously led AWS, said on a call with analysts.

“I believe we have more demand than we could fulfill if we had even more capacity today,” Jassy said. “I think pretty much everyone today has less capacity than they have demand for, and it’s really primarily chips that are the area where companies could use more supply.”

AWS leads the cloud infrastructure market over Google and Microsoft and is an important source of profit for Amazon.

On Tuesday, Google parent Alphabet said revenue from Google Cloud, which includes cloud applications as well as infrastructure, totaled $11.35 billion, up 35%. Microsoft said Wednesday that revenue from Azure and other cloud services grew 33%.

AWS recorded $10.45 billion in operating income, representing 60% of its parent’s profit. Analysts expected $9.15 billion.

The unit’s operating margin came in at 38%, the widest for AWS since at least 2014. Google Cloud reported an operating margin of 17%.

“We’re being very measured in our hiring,” Brian Olsavsky, Amazon’s finance chief, said on the call.

During the quarter, Oracle said it will bring database services to AWS.

“If this is successful, we would love to find more pieces of their application stack that could run well in AWS and help customers do that,” AWS CEO Matt Garman told CNBC in a September interview.

Also in the quarter, AWS announced plans to discontinue some services, including code-repository tool CodeCommit. Garman told TechCrunch that AWS “can’t invest in everything.”

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Amazon’s advertising business grew 19% in the third quarter

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Amazon's advertising business grew 19% in the third quarter

Dominika Zarzycka | Nurphoto | Getty Images

Amazon’s online advertising business brought in $14.3 billion in the third quarter, up 19% year over year, in line with analysts’ estimates of $14.3 billion.

The Seattle tech giant revealed the financial results of its growing advertising unit as part of its latest earnings report Thursday. Amazon’s overall third-quarter sales were $158.9 billion, ahead of analysts’ estimates of $157.2 billion.

Amazon’s online advertising business is still a fraction of the company’s overall business, but its growth over the years has made it a major competitor to Alphabet and Meta, which lead the digital advertising market. Alphabet’s Google currently represents 27.7% of the worldwide digital advertising market, followed by Meta at 22.8% and Amazon with 8.8%, according to data provided to CNBC by Emarketer.

Meta’s third-quarter advertising revenue came in at $39.9 billion, which was up 19% compared with the year prior. That was slightly ahead of analysts’ expectations of $39.49 billion, according to StreetAccount. Ads accounted for 98.3% of Meta’s overall third-quarter revenue.

Alphabet generated $65.85 billion in third-quarter ad revenue, the company reported Tuesday. That was up 10% from $59.65 billion the year prior. Additionally, advertising sales for the company’s YouTube unit rose 12% year over year to $8.92 billion.

Jefferies' Brent Thill on Microsoft & Meta earnings: AI expectations for investors got overinflated

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Intel shares jump 9% on earnings beat, uplifting guidance

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Intel shares jump 9% on earnings beat, uplifting guidance

Intel CEO Pat Gelsinger holds an artificial intelligence processor as he speaks during the Computex conference in Taipei, Taiwan, on June 4, 2024.

Annabelle Chih | Bloomberg | Getty Images

Intel shares rose 9% in extended trading on Thursday after the chipmaker reported better-than-expected revenue and issued quarterly guidance that topped estimates.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: Loss of 46 cents adjusted
  • Revenue: $13.28 billion vs. $13.02 billion expected

Intel’s revenue declined 6% year over year in the quarter, which ended on Sept. 28, according to a statement. The company registered a net loss of $16.99 billion, or $3.88 per share, compared with net earnings of $310 million, or 7 cents per share, in the same quarter a year ago.

As part of its cost reduction plan, Intel recognized $2.8 billion in restructuring charges during the quarter. There were also $15.9 billion in impairment charges.

Intel has been mired in an extended slump due to market share losses in its core businesses and an inability to crack artificial intelligence. CEO Pat Gelsinger revealed plans during the quarter to turn the company’s foundry business into an independent subsidiary, a move that would enable outside funding options.

CNBC reported that Intel had engaged advisors to defend itself against activist investors. In late September, news surfaced that Qualcomm reached out to Intel about a possible takeover.

The Client Computing Group that sells PC chips recorded $7.33 billion in revenue, down about 7% from a year earlier and below the $7.39 billion consensus among analysts surveyed by StreetAccount.

Revenue from the Data Center and AI segment came to $3.35 billion, which was up about 9% and more than the $3.17 billion consensus from StreetAccount.

Intel called for fiscal third-quarter adjusted earnings of 12 cents per share and revenue between $13.3 billion and $14.3 billion. Analysts had expected 8 cents in adjusted earnings per share and $13.66 billion in revenue.

During the quarter, Intel announced the launch of Xeon 6 server processors and Gaudi artificial intelligence accelerators.

As of Thursday’s close, Intel shares were down about 57% in 2024, while the S&P 500 index had gained 20%.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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