Elon Musk Denies Report of Revenue-Sharing Agreement with AI Startup xAI
Elon Musk has sparked controversy by denying a report from The Wall Street Journal (WSJ) that Tesla, one of his companies, has discussed sharing revenue with xAI, another of his companies, to utilize the startup’s AI models. The proposed agreement allegedly entailed using xAI’s models in Tesla’s driver-assistance software, known as Full Self-Driving (FSD), as well as developing features such as a voice assistant and software for Tesla’s humanoid robot, Optimus.
Musk took to his social media platform X (formerly Twitter) to respond to the report, saying he had not read the WSJ story but that a summary of the report posted by someone was “not accurate.” He claimed that Tesla had learned valuable insights from discussions with xAI engineers that helped accelerate its pursuit of unsupervised FSD, but insisted that there was no need to license anything from xAI.
Musk also emphasized that the AI models used by xAI are incredibly large and contain most of human knowledge. He argued that these models are too massive to run on Tesla’s vehicle inference computer and that it would be undesirable to do so even if it were possible. This denial raises questions about the true extent of Tesla’s collaboration with xAI and whether Musk has any ulterior motives for creating the AI startup.
It is worth noting that xAI was created by Musk as a competitor to OpenAI, an organization he co-founded but eventually left. TechCrunch reported earlier this year that xAI aimed to train its models using data from various companies owned by Musk, including Tesla, SpaceX, The Boring Company, Neuralink, and X. If successful, this approach could supposedly improve technology across Musk’s companies.
Tesla shareholders have sued Musk over his decision to establish xAI, alleging that he has diverted talent and resources from Tesla to a competing company. This lawsuit highlights the controversy surrounding Musk’s business dealings and the potential conflicts of interest that arise from his ownership of multiple companies.
In light of Musk’s denial, it remains unclear whether Tesla and xAI have indeed discussed a revenue-sharing agreement or whether Musk’s claims are entirely accurate. Regardless, the debate surrounding the intersection of AI, business, and technology will undoubtedly continue to shape the future of innovation and entrepreneurship.
