The acquisition initially came to light when DeepScale's CEO, Forrest Iandola, posted on LinkedIn that he had joined Tesla's Autopilot team as a senior machine learning specialist. Sources confirmed the acquisition to CNBC, but the terms of the deal aren't known. Tesla shares fell 0.73% in after-hours trading on Tuesday after the deal was reported; shares rose 1.6% during the regular session.
DeepScale focuses on helping automakers process various data sources to deliver accurate computer vision, and raised $15 million before being acquired by Tesla.
Tesla's Autopilot feature has attracted controversy at various points, having been implicated in numerous collisions. Tesla has also faced criticism for selling what it refers to as a "full self-driving" software package before the technology is perfected or approved by regulators.
Nonetheless, earlier this year Musk announced an elaborate plan to convert Tesla vehicles into a self-driving transportation network whereby Tesla owners can rent out their cars for autonomous rides.
More recently, Tesla's "smart summon" feature, which allows drivers to summon their Teslas out of a parking space, has attracted negative attention from car owners posting videos and anecdotes of damage and near-collisions resulting from use of the feature.
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