Elon Musk Denies Reports of xAI-Tesla Revenue Sharing Deal for AI Technology

Musk denies report his xAI in talks over Tesla revenue

Elon Musk denied a report that his artificial intelligence startup xAI has held talks for a share in future Tesla revenue in return for giving Musk's electric vehicle maker access to xAI's technology and resources. The Wall Street Journal reported on Saturday that Tesla would license xAI's artificial-intelligence models to help power its driver-assistance software, full self-driving technology and share some of that revenue with the startup, according to the proposed arrangement as described to investors. "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," Musk posted late on Saturday on his social media platform X, adding that the report is "not accurate." The Journal, citing people familiar with the matter whom it did not identify, said xAI would support the development of other features for Tesla, including a voice assistant in its electric cars and software to power its humanoid robot Optimus. The terms of any revenue-sharing agreement between xAI and Tesla would depend in part upon how extensively Tesla relied on xAI's technology as opposed to its own, the report said, adding that xAI executives have discussed an even revenue split from Tesla's FSD. xAI could not be reached for a comment. Musk launched xAI last year to compete with Microsoft-backed OpenAI. It sparked concerns that he might allocate some resources of the automaker to the AI company. 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. (Reporting by Maria Ponnezhath in Bengaluru; Editing by William Mallard)

Musk Denies Tesla And xAI Collaboration On AI Technology And Revenue Sharing

Tech mogul Elon Musk denied reports that the artificial intelligence startup xAI will support the electric vehicle manufacturer Tesla in using AI models to develop self-driving technology and that the two companies will share revenue. In a report citing a proposed agreement as described to investors, The Wall Street Journal stated over the weekend that Tesla would use xAI's artificial-intelligence models to power its driver-assistance software, full self-driving technology, or FSD, and voice assistant, and in return share revenue with xAI. However, Musk, in a post on X, said that the report was not accurate. "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," he posted. The WSJ report stated that apart from FSD, xAI would support Tesla with additional features such as voice assistant in its electric cars and software to power its humanoid robot Optimus. However, Musk countered that by saying, "The xAI models are gigantic, containing, in compressed form, most of human knowledge, and couldn't possibly run on the Tesla vehicle inference computer, nor would we want them to." While the two companies discussed splitting the revenue related to FSD, distribution of revenue from other features would depend on the volume of AI technology utilized by Telsa, the report stated. After launching xAI last year, Musk suggested about opportunities to integrate xAI's chatbot, Grok, with Tesla's software, and building a new Tesla data center. In July, this year, Musk said he discussed with Tesla board about investing $5 billion in xAI. The two companies share a close relationship, with xAI hiring several Tesla employees. Last year, Musk redirected thousands of Nvidia AI chips from Tesla to xAI, stating that carmaker had "no use" for them, reported Investor.com. Tesla shareholders have filed suits in the Delaware Court of Chancery, claiming that reallocation of resources had harmed Tesla investors. Musk had also threatened to shift AI and robotics work to xAI if his compensation at Tesla was not hiked. During the xAi launch, the company envisioned training its models using data from Musk's various companies -- Tesla, SpaceX, The Boring Company, Neuralink, and X, aiming at enhancing technology across all of these companies, TechCrunch reported. Musk started xAI to compete against OpenAI, which he co-founded, but quit later.

Tesla has 'no need' to license xAI's models to improve its self-driving tech, according to Elon Musk

Tesla TSLA CEO Elon Musk has denied a report that his automaker has considered sharing revenue with his artificial intelligence startup, xAI, so that it can use its models. The Wall Street Journal, citing people familiar with the matter, reported that a proposed deal would see Tesla license xAi's models to help power its Full Self-Driving (FSD) software, in return for sharing some revenue. The startup would also help develop other features for Tesla, including a voice assistant for its electric vehicles and software for Tesla's Optimus robots. But Musk on Sunday poured cold water on the idea, writing on X, formerly Twitter, that "WSJ is talking nonsense" and replied to a social media post summarizing the article as "not accurate." He added that Tesla has learned a lot from meeting with xAI engineers, but that there is "no need" to license anything from the startup. "The xAI models are gigantic, containing, in compressed form, most of human knowledge, and couldn't possibly run on the Tesla vehicle inference computer, nor would we want them to," Musk said. A deal between Tesla and xAI -- whether it looks like what the Journal reports or not -- is still very likely. After posting a poll on X gauging his followers' interest in Tesla investing in xAI, Musk said he would discuss a $5 billion investment with Tesla's board of directors. A group of almost 1,400 Tesla investors led by Alexandra Merz signed a letter to the board supporting an investment. For xAI, a deal would likely help it ramp up its plans to take on OpenAI, which Musk helped found. xAI's training cluster, Colossus, came online earlier this month, and will be used to train the startup's large language model (LLM) named Grok. xAI raised $6 billion in a Series B funding round in May, which pushed its valuation to $24 billion. As for Tesla, Musk has previously said that xAI has been "actually helpful in advancing Full Self-Driving and in building up the new Tesla data center," and that there are "opportunities to integrate Grok" into Tesla's software. Grok is already integrated into X, which Musk also owns. Investors who signed Merz's letter say they believe an investment would let Tesla focus its resources on its own AI-focused projects, including FSD and Optimus, as well as energy projects and the Dojo supercomputer. Tesla last week laid out an AI roadmap, which aims for the company to secure regulatory approval to launch FSD in Europe and China in early 2025. The automaker is also working on self-driving robotaxis, which it says it will finally unveil on Oct. 10. An agreement would likely bring Musk further scrutiny from critics and some Tesla investors, several of whom have already accused Musk of failing to meet his responsibilities as Tesla's CEO. In the past, he has asked Nvidia to prioritize its shipment of AI chips to X and xAI over Tesla, and several engineers have left Tesla to join xAI. At least three shareholders have filed lawsuits regarding shifting resources from Tesla to xAI. Massachusetts Sen. Elizabeth Warren has accused Tesla's board of "neglecting its duty" and asked if it has reviewed Musk's plans to use Tesla's resources to aid his other firms, which include includes aerospace firm SpaceX, tunneling venture The Boring Co., and brain chip startup Neuralink.

Elon Musk Refutes Reports Of xAI Negotiating Revenue Share Deal With Tesla: 'There Is No Need To License Anything' - Tesla (NASDAQ:TSLA)

Tesla Inc TSLA CEO Elon Musk on Sunday denied reports of his artificial intelligence startup xAI discussing a deal with his EV company for a share of its revenue in return for providing the carmaker access to the AI startup's technology and resources. What Happened: "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," Musk wrote on X. xAI's artificial intelligence models are "gigantic" and couldn't possibly run on the Tesla's in-vehicle inference computer, the CEO added. Why It Matters: The Wall Street Journal reported on Saturday that xAI is discussing a potential deal with Tesla. The deal would involve Tesla licensing AI models from xAI for its Full Self-Driving (FSD) driver assistance software, the report said, citing people familiar with the matter. WSJ reported that the proposed deal would entail Tesla sharing a portion of its revenue with xAI. xAI would also contribute to the development of additional features for Tesla, such as a voice assistant similar to Siri and software for Tesla's humanoid robot, Optimus, the report said. The specifics of the revenue-sharing agreement would be contingent on the extent to which Tesla utilizes xAI's technology in comparison to its own, WSJ added. Check out more of Benzinga's Future Of Mobility coverage by following this link. Read More: Elon Musk Says Tesla Will Open 'A Lot More Superchargers,' Asks EV Enthusiasts For Input On Where To Install Them Next Image made via photos on Shutterstock Market News and Data brought to you by Benzinga APIs

Elon Musk says Tesla has 'no need' to license xAI models | TechCrunch

Elon Musk has denied a report that one of his companies, Tesla, has discussed sharing revenue with another of his companies, xAI, so that it can use the startup's AI models. The Wall Street Journal wrote yesterday that under a proposed agreement described to investors, Tesla would use xAI models in its driver-assistance software (known as Full Self-Driving or FSD). The AI startup would also help develop features such as a voice assistant in Tesla vehicles and software for its humanoid robot Optimus. Writing on his social media platform X (formerly Twitter), Musk said he hadn't read the WSJ story, but he described a post summarizing the report as "not accurate." "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," he wrote. "The xAI models are gigantic, containing, in compressed form, most of human knowledge, and couldn't possibly run on the Tesla vehicle inference computer, nor would we want them to." Musk founded xAI as a competitor to OpenAI (which he co-founded but eventually left). TechCrunch reported earlier this year that as part of the pitch for xAI's $6 billion funding round, the startup outlined a vision where its models would be trained on data from Musk's various companies (Tesla, SpaceX, The Boring Company, Neuralink, and X), and its models could then improve technology across those companies. Tesla shareholders have sued Musk over the decision to start xAI, arguing that Musk has diverted talent and resources from Tesla to what is essentially a competing company.

Musk denies report his xAI in talks over Tesla revenue

Elon Musk has said xAI would be "helpful in advancing full self-driving and in building up the new Tesla data centre. -- Reuters file Elon Musk denied a report that his artificial intelligence startup xAI has held talks for a share in future Tesla revenue in return for giving Musk's electric vehicle maker access to xAI's technology and resources. The Wall Street Journal reported on Saturday that Tesla would license xAI's artificial-intelligence models to help power its driver-assistance software, full self-driving technology and share some of that revenue with the startup, according to the proposed arrangement as described to investors. "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," Musk posted late on Saturday on his social media platform X, adding that the report is "not accurate." The Journal, citing people familiar with the matter whom it did not identify, said xAI would support the development of other features for Tesla, including a voice assistant in its electric cars and software to power its humanoid robot Optimus. In July, the billionaire CEO said he and the Tesla board would discuss a $5 billion investment in xAI.

Elon Musk denies report xAI is in talks to get Tesla revenue for providing technology

Also Read: Jeff Bezos' Project Kuiper satellite internet to get UK approval, competition with Elon Musk's Starlink intensifies The Wall Street Journal reported on Saturday that Tesla would license xAI's artificial-intelligence models to help power its driver-assistance software, full self-driving technology and share some of that revenue with the startup, according to the proposed arrangement as described to investors. "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," Musk posted late on Saturday on his social media platform X, adding that the report is "not accurate." The Journal, citing people familiar with the matter whom it did not identify, said xAI would support the development of other features for Tesla, including a voice assistant in its electric cars and software to power its humanoid robot Optimus. Also Read: Italian officials feel EU's 2035 combustion engine ban is 'absurd,' seek reversal The terms of any revenue-sharing agreement between xAI and Tesla would depend in part upon how extensively Tesla relied on xAI's technology as opposed to its own, the report said, adding that xAI executives have discussed an even revenue split from Tesla's FSD. xAI could not be reached for a comment. Musk launched xAI last year to compete with Microsoft-backed OpenAI. It sparked concerns that he might allocate some resources of the automaker to the AI company. 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.

Musk denies report his xAI in talks over Tesla revenue

(Reuters) -Elon Musk denied a report that his artificial intelligence startup xAI has held talks for a share in future Tesla revenue in return for giving Musk's electric vehicle maker access to xAI's technology and resources. The Wall Street Journal reported on Saturday that Tesla would license xAI's artificial-intelligence models to help power its driver-assistance software, full self-driving technology and share some of that revenue with the startup, according to the proposed arrangement as described to investors.

Musk's xAI has discussed deal for share in future Tesla revenue

Under a proposed arrangement as described to investors, Tesla would license xAI's AI models to help power its driver-assistance software, called Full Self-Driving, and share some of that revenue with the startup, according to people familiar with the matter. xAI would assist in developing other features for Tesla, including a Siri-like voice assistant inside its electric cars and software to power its humanoid robot Optimus, the people said. The terms of any revenue-sharing agreement between xAI and Tesla would depend in part upon how extensively Tesla relied on xAI's technology as opposed to its own, the people said. xAI executives have discussed an even revenue split from Tesla's FSD, one of the people said.Musk has bet the future of Tesla on robotics and artificial intelligence. FSD costs Tesla drivers $99 a month or a flat fee of $8,000 to use the service, which requires drivers to keep their hands on the wheel. The company is also developing a robotaxi, which is scheduled to be unveiled Oct. 10. It is unclear when it will be made available to the public. Musk has promised for years that FSD will advance enough to make all Teslas fully autonomous and suggested that success could turn Tesla into a multitrillion-dollar company. Musk also has said Tesla would be worth "basically zero" without full autonomous driving. Formalizing a partnership with xAI in which Tesla would hand over some of its revenue and future AI development to a separate Musk-controlled company would add to the tech mogul's practice of sharing assets freely across his business empire.Musk is already shifting talent and hardware between xAI and Tesla as he plays catch-up in the AI race, raising concerns about potential conflicts of interest. There is particular scrutiny around how Musk shares resources of Tesla, which is publicly traded. Several Tesla shareholders have filed suits claiming that the shift in resources to xAI has hurt the carmaker's investors. The cases are pending in the Delaware Court of Chancery. xAI has hired multiple employees from Tesla, including several who have worked directly on the Autopilot team focused on developing self-driving capabilities. Musk also diverted thousands of hard-to-get Nvidia GPUs from Tesla to xAI last year. After that move became public, Musk said that "Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse." In pitches to investors, xAI representatives have described the company as a future key technology provider for Tesla's suite of software products, the people familiar with the possible revenue-sharing agreement said. In a July post, Musk asked X users if Tesla should invest $5 billion into xAI. Two days later, he posted: "Looks like the public is in favor. Will discuss with Tesla board." Musk has historically awarded companies that help his other businesses with their equity. Musk previously said he would give investors in his $44 billion X acquisition a quarter ownership in xAI. Grok, xAI's chatbot, is integrated into X, and the two companies share some resources. "Tesla is learning quite a bit from xAI," Musk said on a July conference call with investors after the company reported earnings. "It's been actually helpful in advancing Full Self-Driving and in building up the new Tesla data center." He also said there were opportunities to integrate xAI's Grok chatbot into Tesla's software. In May, xAI raised $6 billion at a $24 billion valuation from investors including Sequoia Capital, Andreessen Horowitz, Valor Equity Partners, and Saudi Prince al-Waleed bin Talal and Kingdom Holding. This month, the company launched a new data center in Tennessee, dubbed Colossus, which Musk said is " the most powerful AI training system in the world." Musk has also said Tesla would spend $10 billion in capital expenditures this year to build out its AI capabilities. "If somebody doesn't believe Tesla is going to solve autonomy, I think they should not be an investor in the company," Musk told investors on an April earnings call. It is unclear how the deal with xAI would affect Tesla's spending. Tesla has heavily invested in building out its data-center capabilities, including by developing special chips for a supercomputer it calls Dojo, with data centers in Palo Alto, Calif., and Austin, Texas, and plans for one in Buffalo, N.Y. Employees at xAI and Tesla have advised each other on the design and construction of their data centers, people familiar with the matter said. Tesla's sales and profits have taken a tumble amid increasing competition in the electric-vehicle market, with its stock down about 14% this year through Friday. -- Tom Dotan and Meghan Bobrowsky contributed to this article.

Musk's AI Startup Has Discussed Tesla Deal

Elon Musk's AI startup, xAI, has talked with Tesla, Musk's publicly traded car manufacturer, about a deal that would give it a piece of Tesla revenue. The two companies have discussed Tesla licensing the startup's AI models to help the carmaker develop its Full Self-Driving software, and, in return, Tesla would share some revenue with xAI, according to The Wall Street Journal. The