Elon Musk has recently refuted a report claiming that Tesla, one of his companies, was in talks to share revenue with xAI, another company founded by him. The Wall Street Journal alleged that a potential agreement would involve Tesla utilizing xAI’s AI models in its Full Self-Driving (FSD) software and collaborating on features like a voice assistant and software for the humanoid robot Optimus. However, Musk took to his social media platform X to dismiss the story, labeling a summary of the report as “not accurate.”
In his statement, Musk clarified that while Tesla has benefited from discussions with xAI engineers in advancing its unsupervised FSD technology, there is no intention to license anything from xAI. He emphasized that the sheer size of xAI models, containing a vast amount of human knowledge, would not be compatible with Tesla’s vehicle inference computer. Musk stressed that collaboration with xAI has been instrumental in Tesla’s progress but does not involve financial agreements regarding AI models.
xAI was established by Musk as a rival to OpenAI, an organization he was previously associated with. Reports earlier this year detailed xAI’s ambitious plans during a funding round, envisioning its models being trained on data from Musk’s array of companies, which includes Tesla, SpaceX, The Boring Company, Neuralink, and X. The goal was to leverage these models to enhance technology advancements across all entities, highlighting a grand vision for xAI’s role within Musk’s business portfolio.
Despite Musk’s optimism about xAI’s potential, the company has faced backlash from Tesla shareholders, resulting in legal action against Musk. Shareholders argue that the creation of xAI has diverted valuable talent and resources from Tesla to a seemingly competitive venture. The lawsuit underscores the tensions within Musk’s conglomerate of companies and raises questions about the strategic direction of his various ventures.
The controversy surrounding revenue sharing between Tesla and xAI sheds light on the complexities of Musk’s business ecosystem. While Musk denies any formal agreements regarding AI models, the situation underscores the challenges of managing multiple ambitious projects simultaneously. As Musk navigates through legal disputes and public scrutiny, the outcome of the Tesla-xAI saga remains uncertain, signaling a pivotal moment in the trajectory of Musk’s entrepreneurial endeavors.