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Musk Denies Tesla Revenue Sharing with xAI

Musk Denies Tesla Revenue Sharing with xAI

Entrepreneur Elon Musk has refuted claims that Tesla discussed the possibility of using AI models from his startup xAI and sharing revenue.

On September 8, the WSJ, citing sources, reported that such a deal was being discussed between the billionaire’s two companies. Tesla allegedly plans to license xAI’s AI models for integration into the Full Self-Driving (FSD) feature suite and share part of the revenue with the startup.

Discussions also included assistance in developing other features for the automaker, including a Siri-like voice assistant and software for the Optimus humanoid robot.

The terms of revenue sharing depend on the extent of xAI technology application, the newspaper added.

Musk noted that he had not read the article but called the post containing a brief excerpt “inaccurate.”

“Tesla has learned a lot from discussions with xAI developers, which helped accelerate the achievement of unsupervised FSD, but there is no need to license anything from the startup. The xAI models are gigantic, containing in compressed form most of human knowledge, and cannot run on Tesla’s car computer, nor would we want them to,” Musk wrote.

In another comment, the entrepreneur called the WSJ material “nonsense.”

In July, Musk proposed that Tesla invest $5 billion in xAI.

Earlier, Tesla shareholders sued CEO Elon Musk and the board of directors over the billionaire’s decision to establish xAI.

In September, the AI startup launched the largest artificial intelligence training cluster, Colossus, using 100,000 Nvidia H100 graphics processors.

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