I was sure it did - and then saw posts that said it didn't. So I paid close attention. It can't possibly be 'just lucky' or really accurate geo info ... because I have watched repeatedly as the speed shows as 55 ... 55 ... and boom, I pass the sign and it's 65 as it should be. Right on the money. Again and again. On my non-California windy mountain roads and open freeways.
edit: Perhaps a good test would be to have an accomplice cover a speed sign, drive past ... and then uncover and drive past. But local law enforcement would likely frown upon that activity.
It's just the database. The road our office is on goes through a residential area. The speed limit is 50 kph. Until the last software update, the autopilot thought the limit was 80 kph! There are plenty of signs. As of the latest update, it doesn't indicate any limit.