Musk disputes disclosing his xAI

during conversations regarding Tesla’s earnings.

In a narrative, Elon Musk refuted claims that his artificial intelligence startup, xAI, had contemplated accepting a possible equity investment in Tesla (TSLA.O) in return for providing the electric vehicle manufacturer with access to xAI’s resources and technology.

According to the planned arrangement as presented to investors, Tesla would license xAI’s artificial intelligence models to power its driver-assistance software and fully autonomous technology, and the Wall Street Journal reported on Saturday that the firm would split a portion of the money generated.

Elon Musk said late on Saturday on his social media platform X, “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,” and added that the report was “not accurate.”

According to the Journal, which cited anonymous sources with knowledge of the situation, xAI will help Tesla build additional capabilities, such as software for its humanoid robot Optimus and a voice assistant for its electric vehicles.

According to the source, xAI officials have talked about an equal income split from Tesla’s FSD.

The parameters of any revenue-sharing arrangement between xAI and Tesla would rely in part on how much Tesla depended on xAI’s technology as opposed to its own.
A comment from xAI could not be obtained.

To take on OpenAI, which is supported by Microsoft, Musk introduced xAI last year. It raised questions about whether he would give the AI startup access to some of the automaker’s resources.

He has said xAI would be “helpful in advancing full self-driving and in building up the new Tesla data center,” adding that there were opportunities to integrate xAI’s chatbot, Grok, with Tesla’s software.

In July, the billionaire CEO said he and the Tesla board would discuss a $5 billion investment in xAI.