Elon Musk recently denied reports that his companies, Tesla and xAI, have discussed sharing revenue to allow Tesla to use xAI’s AI models. The Wall Street Journal had reported that there were discussions about Tesla using xAI models in its driver-assistance software and collaborating on features for Tesla vehicles and the humanoid robot Optimus. However, Musk took to his social media platform to refute these claims, stating that the report was inaccurate.
In his response, Musk mentioned that while Tesla has learned from its discussions with engineers at xAI, there is no need to license anything from the AI startup. He emphasized that the xAI models are massive and contain a vast amount of human knowledge, making them unsuitable for running on Tesla’s vehicle inference computers. Musk also highlighted that the discussions with xAI had helped accelerate progress towards achieving unsupervised Full Self-Driving technology.
Elon Musk founded xAI as a competitor to OpenAI, a company he co-founded but later departed from. Earlier this year, it was reported that xAI was seeking a $6 billion funding round, with the startup’s vision being to train its models on data from Musk’s various companies, including Tesla, SpaceX, The Boring Company, Neuralink, and X. This approach was aimed at improving technology across all of Musk’s ventures.
Despite Musk’s insistence that there is no revenue-sharing agreement between Tesla and xAI, Tesla shareholders have filed lawsuits against Musk. They allege that by diverting talent and resources to xAI, Musk has harmed Tesla’s interests and essentially created a competing entity within his own ecosystem. The legal challenges highlight the complexity and interconnected nature of Musk’s various ventures.
Overall, the situation underscores the close relationship between Musk’s different companies and the potential conflicts that can arise from overlapping interests. As Musk continues to push the boundaries of technology and innovation, it will be essential for him to navigate these challenges carefully to ensure the success and sustainability of his ventures.