Elon Musk has denied reports that his artificial intelligence (AI) startup xAI has entered into talks for a share of Tesla’s future revenue in exchange for Musk’s electric car maker receiving xAI’s technology and resources.
The Wall Street Journal reported on Saturday that Tesla would license xAI’s artificial intelligence models to help drive its driver-assist software and fully autonomous technology and share some revenue with the startup, under a proposed arrangement described to investors.
Late on Saturday, Musk posted on his social media platform
The Wall Street Journal, citing unnamed people familiar with the matter, said xAI will support the development of other Tesla features, including voice assistants in electric vehicles and software that powers its humanoid robot Optimus.
The terms of any revenue-sharing agreement between xAI and Tesla would depend in part on Tesla’s reliance on xAI’s technology rather than its own, the report said, adding that xAI executives have discussed an even revenue split with Tesla FSD.
xAI could not be reached for comment.
Musk launched xAI last year to compete with Microsoft-backed OpenAI. That has raised concerns that he might allocate some of the automaker’s resources to artificial intelligence companies.
He said xAI will “help advance fully autonomous driving and build new Tesla data centers,” adding that there are opportunities to integrate xAI’s chatbot Grok with Tesla’s software.
In July this year, the billionaire CEO said that he and Tesla’s board would discuss investing $5 billion (approximately Rs. 41,979 crore) in xAI.
© Thomson Reuters 2024
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