Elon Musk Disputes Reports of xAI, Tesla Revenue-Sharing

Elon Musk has disputed that his artificial intelligence startup, xAI, is in discussions with Tesla about receiving a cut of the electric vehicle manufacturer’s prospective future earnings in exchange for using the business’s technology.

The Wall Street Journal said Tesla was thinking about licensing xAI’s AI models to improve its full self-driving (FSD) and driver-assistance technology, possibly with a revenue-sharing arrangement between the two companies.

Musk spoke at the weekend, denying the allegation on his social media site X.

Indications are that the artificial intelligence model developed by xAI may be licensed by Tesla for use in their Full Self-Driving driver assistance system.

As part of this deal, Elon Musk’s venture would also assist the company in developing other features, like software for the humanoid robot Optimus and a voice assistant.

Elon Musk insisted that these reports are untrue, saying Tesla gained a lot of knowledge from talking to AI startup engineers.

The development of the Full Self-Driving system was accelerated by this, and licensing AI models is not required.

Musk wrote in his post, “Tesla has learned a lot from discussions with engineers at xAI that have helped accelerate achieving unsupervised FSD, but there is no need to license anything from xAI.”

One thing that Musk made very clear is that Tesla and xAI are in talks about working together to develop the much-anticipated unsupervised FSD and that they do not require a license agreement to do so.

Earlier report stated that Tesla CEO Elon Musk has launched a poll on the social media platform X, formerly known as Twitter, asking fans if the electric vehicle company should invest USD 5 billion in his artificial intelligence business, xAI.

The survey was released by the billionaire CEO, who oversees Tesla, SpaceX, The Boring Co., Neuralink, X Corp., and now xAI, shortly after the end of Tesla’s second-quarter results call on Tuesday night.