Tech Giants Boost AI, Tesla Accelerates Robotaxis

Major technology companies, including Apple and Microsoft, are significantly increasing their investments in artificial intelligence infrastructure and development. Microsoft alone is committing billions to expand its AI capabilities globally, signaling an intensifying race for AI dominance, according to recent reports.

Microsoft recently announced substantial investments, including $7.5 billion CAD for AI data center expansion in Canada over the next two years, as reported by BNN Bloomberg on December 9, 2025. This move aims to bolster computing capacity and support Canadian digital sovereignty.

Concurrently, Apple is also pouring significant resources into AI, with its fiscal year 2025 R&D expenses reaching $34.55 billion, a 10.14% increase from the previous year. These funds are primarily directed towards strategic AI initiatives and silicon engineering, as noted in a December 12, 2025 AInvest report.

Meanwhile, Tesla is aggressively advancing its robotaxi ambitions, with CEO Elon Musk confirming on December 9, 2025, that safety monitors will be removed from its Austin operations within approximately three weeks. This bold step aims for fully unsupervised robotaxi services by year-end, according to teslarati.

Musk stated at the xAI Hackathon that "unsupervised is pretty much solved at this point," indicating a significant milestone for Tesla's Full Self-Driving technology. This timeline aligns with his earlier promises for driverless operations in Austin by the end of 2025.

However, market analysts remain cautious regarding the real-world demand for electric vehicles (EVs) and the justification of current valuations, particularly for Tesla. Morgan Stanley downgraded Tesla on December 8, 2025, citing that the stock's valuation already reflects high expectations for AI and robotics amid slower EV adoption.

Global EV sales growth has decelerated in 2025, with North America experiencing a notable slowdown due to economic pressures and policy changes, according to a December 14, 2025 report by GuruFocus. Tesla's U.S. sales, for instance, fell to a near four-year low in November.

• Escalating AI Investment Landscape: The year 2025 has seen an unprecedented surge in AI spending by tech giants, with Meta, Microsoft, Amazon, and Alphabet collectively investing $155 billion so far. Projections suggest these figures will escalate into hundreds of billions, primarily directed towards building massive data centers and advanced AI models, as reported by The Guardian on August 3, 2025.

• Microsoft's Strategic Global AI Expansion: Microsoft is making substantial international commitments to AI infrastructure. The company announced a $7.5 billion CAD investment over two years to expand its Azure data center regions in Canada, with new capacity expected online in late 2026, according to BNN Bloomberg. Additionally, Microsoft plans to invest $17.5 billion in India over four years for cloud and AI infrastructure, totaling nearly $23 billion in new global AI investments.

• Apple's Focused AI Development: Apple's approach to AI involves significant internal R&D, with fiscal year 2025 expenses reaching $34.55 billion, a 10.14% increase from 2024. CEO Tim Cook stated in Q3 2025 that Apple is "significantly growing its AI investments" and redirecting talent towards AI development, as highlighted by Investing.com on August 1, 2025. However, some analysts, like AInvest on December 14, 2025, suggest Apple's on-device AI strategy may lag cloud-based rivals in performance.

• Tesla's Robotaxi Unsupervised Rollout: Tesla is pushing for a major leap in autonomous driving by removing safety monitors from its Austin robotaxi operations within approximately three weeks, aiming for late December 2025 or early January 2026. This move, confirmed by Elon Musk at the xAI Hackathon, follows the launch of its Austin service in June 2025, which initially included safety monitors.

• Regulatory and Safety Scrutiny for Autonomous Vehicles: The transition to fully unsupervised robotaxis raises significant regulatory and safety questions. While the National Highway Traffic Safety Administration (NHTSA) has previously sought to remove barriers for autonomous vehicles, advocacy groups like the Center for Auto Safety have expressed concerns about removing safeguards for unproven technology, as reported by pbs News in March 2020. The real-world performance of Tesla's FSD without human oversight will be closely watched.

• Challenges in the Broader EV Market: The electric vehicle market is facing considerable headwinds in 2025. Global EV sales grew by a modest 21% to 18.5 million units, a deceleration from previous periods, with North America experiencing a decline. Factors include economic pressures, the expiry of federal tax credits, and intense competition, particularly from Chinese manufacturers like BYD, according to a December 14, 2025 report by Electrek.

• Tesla's Valuation Under Scrutiny: Tesla's high valuation, currently around $1.35 trillion, is facing increased skepticism from market analysts. Morgan Stanley's downgrade on December 8, 2025, cited that the stock's price already incorporates ambitious expectations for AI and robotics, despite a slowdown in EV adoption. ainvest reported on December 13, 2025, that skeptics point to a 36.82% Q3 net income drop and 4.89% profit margins as indicators of financial unsustainability.

• Future Outlook for AI and Mobility: The aggressive investments in AI by tech giants suggest a future where AI underpins most digital services and infrastructure. For autonomous vehicles, the push towards unsupervised operation, particularly by Tesla, marks a critical juncture. However, the success of robotaxis and the broader EV market will depend on overcoming technological hurdles, addressing safety concerns, and navigating evolving consumer demand and regulatory landscapes.