Elon Musk, the CEO of Tesla, has recently refuted claims that his companies Tesla and xAI have discussed sharing revenue. The Wall Street Journal reported the proposed agreement, suggesting that Tesla would utilize xAI’s AI models in its driver-assistance software, as well as collaborate on other projects such as a voice assistant in Tesla vehicles and software for a humanoid robot.
Taking to his social media platform X, Musk dismissed the report, stating that the summary was inaccurate. He acknowledged the valuable insights gained from discussions with xAI engineers but emphasized that there was no need to license anything from the startup. Musk highlighted the complexity of xAI models, noting that they contain a vast amount of knowledge that could not feasibly run on Tesla’s hardware.
xAI and OpenAI
Musk founded xAI as a competitor to OpenAI, a company he had co-founded but later departed. Reports earlier this year revealed that xAI’s funding pitch included a vision of training their models on data from Musk’s various ventures, such as Tesla, SpaceX, The Boring Company, Neuralink, and X. The goal was to enhance technology across these companies using xAI’s advanced AI models.
Despite Musk’s intentions with xAI, Tesla shareholders have raised concerns and even filed lawsuits against him. They argue that by establishing xAI, Musk has diverted talent and resources away from Tesla towards a competing entity. The legal battle showcases the internal strife caused by Musk’s diverse business interests and the potential conflicts of interest that may arise.
The denial of revenue-sharing discussions between Tesla and xAI sheds light on the complexities of Musk’s empire. While his vision for advancing technology and AI is ambitious, it also raises questions about the allocation of resources and the potential impact on Tesla’s core operations. As Musk navigates these challenges, it remains to be seen how his various ventures will evolve and interact in the future.