Headline: Musk Denies xAI Discussions Over Revenue Share with Tesla
Elon Musk has refuted a report suggesting that his artificial intelligence startup, xAI, is in negotiations with Tesla to secure a share of future revenue. According to a recent Wall Street Journal article, Tesla was considering licensing xAI's AI models to enhance its driver-assistance software and full self-driving (FSD) technology, with a potential revenue-sharing arrangement for xAI.
The Journal's report claimed that Tesla might leverage xAI's technology for various features, including a voice assistant for its electric vehicles and software for its humanoid robot, Optimus. The proposed agreement, as described to investors, would have seen an even revenue split from Tesla's FSD revenue.
In response, Musk dismissed these claims on his social media platform X, stating that the report was "not accurate." He clarified that while Tesla has benefited from discussions with xAI engineers, there is no current need for a licensing agreement with xAI. Musk emphasized that Tesla’s own advancements in technology have been sufficient for its needs.
xAI, which Musk established last year to rival Microsoft-backed OpenAI, has sparked some concerns about potential resource allocation between the automaker and the AI startup. Despite these rumors, Musk has previously indicated that xAI could play a role in advancing Tesla’s full self-driving capabilities and support the development of a new data center. He has also mentioned the potential integration of xAI's chatbot, Grok, with Tesla’s systems.
In July, Musk had suggested that a $5 billion investment in xAI by Tesla was under consideration, but no formal agreement has been announced. As of now, xAI has not provided a comment on the recent reports or Musk’s denial.
