Tesla bets big on robots over EVs
PLUS: UCLA's mind-controlled robotics, China's AI push, and a new $100M startup
Welcome back, AI’ers!
Here’s What’s On The Menu For Today
Tesla's master plan bets big on robots
UCLA’s AI for mind-controlled robotics
Inside China's AI self-sufficiency push
Japanese enterprise AI startup scores $100M
AI ON MY MIND
Happy Tuesday,
Tesla is charting a new course, signaling a major strategic shift from electric vehicles to a future dominated by AI and robotics. The company's new Master Plan 4 centers on the Optimus humanoid robot as the key to its long-term growth.
This move recasts Tesla as a robotics company first, with Elon Musk betting its future on a machine-driven economy. But with the plan light on concrete timelines and technical details, is this a credible pivot or just an ambitious vision?
By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].
-Jelani Fuel (Co-founder of Best of AI)
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TODAY’S TOP STORIES

Tesla Bets Big on AI & Robots Over EVs
The Recap: Tesla has released its new Master Plan 4, signaling a major strategic pivot from electric vehicles to AI and robotics. The ambitious vision centers on the Optimus humanoid robot as the key to unlocking a future of "sustainable abundance."
Unpacked:
Elon Musk predicts the Optimus robot could eventually account for 80% of the company's value, recasting Tesla as a robotics company first.
The plan aims to automate dangerous and monotonous tasks, deploying humanoid robots at scale to transform manufacturing and the nature of labor itself.
Tesla intends to integrate its Full Self-Driving (FSD) technology with Optimus, creating a unified ecosystem where autonomous machines learn and operate in the physical world.
Bottom line: This strategic shift firmly positions Tesla to compete in the AI arena, betting its future on a machine-driven economy. However, the plan is notably light on concrete timelines and technical details, leaving its ambitious vision open to significant skepticism.

AI Powers Breakthrough in Brain-Computer Interface
The Recap: UCLA engineers created a non-invasive system allowing paralyzed patients to control robotic limbs in real-time. The breakthrough uses a standard EEG cap and AI, bypassing the need for risky brain surgery.
Unpacked:
The system pairs a conventional EEG cap with a camera-based AI that interprets a user's movement intent.
Researchers tested the interface with four users, including one paralyzed participant, proving its real-world applicability.
This approach significantly improved both task speed and safety when compared to invasive surgical methods.
Bottom line: This development removes the major barrier of brain surgery, potentially bringing mind-controlled prosthetics out of the lab and into more people's lives. It showcases how AI can serve as a powerful bridge between human thought and machine action, opening new doors for assistive technology.
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MORE STORIES

Inside China's AI Self-Sufficiency Push
The Recap: U.S. export controls aimed at slowing China's AI progress have had the opposite effect, sparking an aggressive push for technological independence. Beijing is now rapidly building its own domestic chip industry and a parallel, open-source AI ecosystem.
Unpacked:
Instead of stalling progress, the sanctions fueled a massive wave of domestic innovation, with firms like SMIC and Huawei now producing competitive AI chips.
China is actively building a competing global ecosystem by offering open-source AI tools and infrastructure through its Digital Silk Road initiative to win over developing nations.
The shift is extending to software, as leading AI companies deliberately optimize their models for domestic hardware, signaling a long-term decoupling from US-centric systems.
Bottom line: The global AI landscape is fracturing into two distinct technological spheres, one led by the U.S. and the other by China. This emerging divide will soon force businesses and developers to navigate competing standards, supply chains, and innovation ecosystems.

Japanese AI Startup Scores $100M for Enterprise Tech
The Recap: Tokyo-based LayerX, a startup that automates back-office tasks with AI, just raised $100 million in a Series B round led by U.S. venture capital firm TCV. The investment will help the company scale its AI-powered tools for invoice processing, expense management, and more.
Unpacked:
Japan's push for automation is creating massive demand, driven by an aging workforce, labor shortages, and a recent e-invoicing mandate.
LayerX is growing rapidly, expanding its customer base from 10,000 to 15,000 companies in just over a year and is on track to hit $68 million in revenue faster than any SaaS company in Japan's history.
The company's main product, the Bakuraku Suite, automates corporate spending, while its engineering team includes over 12 former CTOs and a Kaggle Grandmaster, highlighting its deep technical focus.
Bottom line: This funding highlights major global VC interest in enterprise AI for markets that are overdue for a digital upgrade. It's a powerful reminder that AI's biggest impact may come from solving tedious, everyday business problems.
OTHER NEWS YOU MAY LIKE
Business Insider published a review from a software engineer who found Anthropic's new Claude Code assistant to be a superior alternative to ChatGPT for coding after a one-month trial.
MUFG partnered with Japanese AI research firm Sakana AI to accelerate the digital transformation of its internal systems and co-develop new AI-powered financial services.
OpenAI partnered with the U.S. government to provide federal agencies with access to its AI models, aiming to boost productivity and streamline operations across various departments.
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THAT’S IT FOR TODAY
Until next time, stay safe.
-Best of AI Team
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