Tesla Denies Sharing Revenue with xAI

Elon Musk has refuted claims that Tesla is considering sharing revenue with his AI startup, xAI. This news came after The Wall Street Journal reported on a proposed agreement where Tesla would utilize xAI models in its driver-assistance software, Full Self-Driving (FSD), as well as for features like a voice assistant and software for Optimus, Tesla's humanoid robot.

Musk's Statements on Tesla and xAI

Musk, in a post on his social media platform X (formerly Twitter), stated that he had not read the WSJ article but asserted that the report was inaccurate. He explained that while Tesla has gained valuable insights from discussions with xAI engineers, which have accelerated the development of unsupervised FSD, there is no need to license technology from xAI.

• Musk highlighted the massive size of xAI's models, encompassing a compressed form of human knowledge, rendering them unsuitable for Tesla's vehicle inference computer.

xAI's Vision and Funding

xAI was established by Musk as a competitor to OpenAI, a company he co-founded but later left. Earlier this year, TechCrunch reported that xAI secured $6 billion in funding, with its vision centered on training its AI models on data from various Musk-owned companies, including Tesla, SpaceX, The Boring Company, Neuralink, and X. The aim was to leverage these models to enhance technology across these companies.

Tesla Shareholders' Concerns

The creation of xAI has sparked controversy, with Tesla shareholders filing a lawsuit against Musk. They argue that he has diverted resources and talent from Tesla to a competing company, raising concerns about potential conflicts of interest and the impact on Tesla's business.

Potential Benefits of xAI Integration in Tesla Vehicles

While Musk denies the revenue-sharing arrangement, the potential benefits of integrating xAI models in Tesla vehicles are significant. xAI's advanced AI could enhance Tesla's existing driver-assistance features, potentially leading to more robust and reliable FSD capabilities.

• xAI's models could also power a more sophisticated voice assistant, offering a more natural and intuitive user experience.
• The integration could also accelerate the development of Tesla's Optimus robot, enhancing its capabilities and functionalities.

Tesla's Focus on Unsupervised FSD

Musk's emphasis on unsupervised FSD suggests that Tesla is exploring a different path towards fully autonomous driving, relying on AI to learn and adapt without direct human intervention. This approach, if successful, could revolutionize the automotive industry.

Potential Impact on OpenAI's Position

xAI's emergence as a competitor to OpenAI could lead to a more competitive landscape in the field of AI development. This increased competition could drive innovation and accelerate the development of advanced AI applications. The potential rivalry between these companies could also shape the future of AI research and its impact on society.