US Self-driving Car Companies Seek Boost under Trump

A Ford Fusion hybrid, Level 4 autonomous vehicle, used by Ford Motor and Domino's Pizza to test a self-driving pizza delivery car in Michigan, is displayed during Press Days of the North American International Auto Show at Cobo Center in Detroit, Michigan, US, January 16, 2018. REUTERS/Rebecca Cook/File Photo
A Ford Fusion hybrid, Level 4 autonomous vehicle, used by Ford Motor and Domino's Pizza to test a self-driving pizza delivery car in Michigan, is displayed during Press Days of the North American International Auto Show at Cobo Center in Detroit, Michigan, US, January 16, 2018. REUTERS/Rebecca Cook/File Photo
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US Self-driving Car Companies Seek Boost under Trump

A Ford Fusion hybrid, Level 4 autonomous vehicle, used by Ford Motor and Domino's Pizza to test a self-driving pizza delivery car in Michigan, is displayed during Press Days of the North American International Auto Show at Cobo Center in Detroit, Michigan, US, January 16, 2018. REUTERS/Rebecca Cook/File Photo
A Ford Fusion hybrid, Level 4 autonomous vehicle, used by Ford Motor and Domino's Pizza to test a self-driving pizza delivery car in Michigan, is displayed during Press Days of the North American International Auto Show at Cobo Center in Detroit, Michigan, US, January 16, 2018. REUTERS/Rebecca Cook/File Photo

A group representing self-driving car companies on Tuesday called on the US government to do more to speed the deployment of autonomous vehicles and remove barriers to adoption.

"The federal government is the one that needs to lead when it comes to vehicle design, construction and performance, and we just have not seen enough action out of the federal government in recent years," Jeff Farrah, who heads the Autonomous Vehicle Industry Association, said in an interview.

The group includes Volkswagen Ford, Alphabet's Waymo, Amazon.com's Zoox, Uber and others, Reuters reported.

The group released a policy framework calling on the US Department of Transportation (USDOT) to "assert its responsibility over the design, construction, and performance of autonomous vehicles and increase its efforts in key areas."

The group added that "federal inaction has created regulatory uncertainty" and warned China is determined to take the United States lead on autonomous vehicle technology.

"We want to make sure there is a clear pathway to getting these next-generation vehicles on the road," said Farrah.

"We have been frustrated by the lack of progress."

In December 2023, the group and others called on the USDOT to do more.

Transportation Secretary Pete Buttigieg said in an interview on Monday the government was ensuring that self-driving cars would be much better than human drivers.

"I think being very rigorous in these early stages is helping these technologies start to meet their potential to save lives," Buttigieg said, adding the oversight would boost public acceptance.

The industry faces scrutiny after a pedestrian was seriously injured in October 2023 by a General Motors Cruise vehicle. The USDOT has opened investigations into self-driving vehicles operated by Cruise, Waymo and Zoox.

The autonomous vehicle group wants Congress to clarify human controls are unnecessary in automated vehicles meeting performance standards and allow companies to disable a self-driving vehicles' manual controls. It also called for creating a national AV safety data repository that would be available to state transportation agencies.

Last month, the USDOT proposed streamlining reviews of petitions to deploy self-driving vehicles without human controls like steering wheels or brake pedals.

Efforts in Congress to make it easier to deploy robotaxis on US roads without human controls have been stymied for years but may be boosted when President-elect Donald Trump takes office.

Reuters and other outlets have reported Trump wants to ease deployment barriers for self-driving vehicles. Tesla CEO Elon Musk, a close adviser to Trump, said in October the automaker would roll out driverless ride-hailing services in 2025.



Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
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Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.

The deal could also help xAI's ability to train its chatbot known as Grok.

"xAI and X's futures are intertwined," Musk, who also heads automaker Tesla and SpaceX, wrote in a post on X: "Today, we officially take the step to combine the data, models, compute, distribution and talent."

He said the combination values "xAI at $80 billion and X at $33 billion ($45B less $12B debt)".

Representatives for X and xAI did not immediately respond to requests for comment. Much of the deal's specifics remain unclear, such as how X's leaders would be integrated in the new firm or whether there would be regulatory scrutiny.

Musk, the world's wealthiest man, is also a close ally of US President Donald Trump and heads the Department of Government Efficiency.

D.A. Davidson analyst Gil Luria said the price tag for X of $45 billion when debt was included was not a coincidence. "It is $1 billion higher than the take-private transaction for Twitter in 2022."

An investor in xAI who declined to be identified said they were not surprised by the deal, viewing it as Musk consolidating his leadership and management at his own companies.

Musk did not ask investors for approval but told them that the two companies had been collaborating closely and the deal would drive deeper integration with Grok, the investor said.

OPENAI RIVALRY

Musk's xAI startup was launched less than two years ago and recently raised $10 billion in a funding round that valued the company at $75 billion, according to a media report.

It competes with the likes of Microsoft-backed OpenAI as well as with Chinese startup DeepSeek.

In February, Musk, 53, made a $97.4 billion bid with a consortium for OpenAI, which was rejected and he has sued to prevent the ChatGPT maker from converting from a non-profit to a for-profit business. A judge this month denied Musk's request for a preliminary injunction that would prevent the changeover.

As competition in AI intensifies, xAI has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the largest in the world.

xAI introduced Grok-3, the latest iteration of its chatbot, in February.

The X platform could serve to further distribute xAI products, while also providing a real-time feed of users' musings, screenshots and other data.

After buying Twitter, Musk gutted the company's workforce, prompting advertisers to flee the platform and a rapid decline in revenue. Recently, brands have been returning to X as Musk's influence in the Trump administration grows.

The seven banks that extended $13 billion in loans to Musk to buy X kept the debt on their books for two years until they were able to sell it all at once last month, according to a source familiar with the transactions.

This was made possible after a surge in investor interest for exposure to AI companies along with X's improved operating performance over the previous two quarters, among other factors, according to two people familiar with the matter.

After the merger, investors who bought the debt from the banks will profit, said Espen Robak, founder of Pluris Valuation Advisors, which specializes in illiquid assets. "For sure the debt is worth more now, if not fully paid off."

Separately, a US judge on Friday rejected a bid by Musk to dismiss a lawsuit claiming he had defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the company.