XAI is in negotiations with Tesla on revenue sharing. Musk responded: the report is inaccurate
Elon Musk's xAI under Tesla is in discussions about an agreement to share future revenue in exchange for AI technology and resources. xAI plans to provide AI model authorization and assist Tesla in developing features such as voice assistants. However, Musk has denied the report, emphasizing that Tesla does not need xAI's authorization. This collaboration has raised concerns among shareholders, stating that the transfer of resources to xAI may harm the interests of Tesla investors
According to the financial news app Zhitong Finance, it was reported by media citing informed sources that Elon Musk's artificial intelligence startup xAI discussed an agreement to share Tesla's (TSLA.US) future revenue, as part of an exchange to provide technology and resources to the electric car manufacturer. Under the proposed agreement, xAI will provide Tesla with AI model authorization in exchange for a portion of Tesla's software revenue. In addition, xAI will also assist Tesla in developing other features, such as a voice-controlled assistant inside electric vehicles, and software to power the humanoid robot Optimus.
The report stated that the revenue-sharing agreement between xAI and Tesla will partly depend on Tesla's reliance on xAI technology. Executives at xAI have discussed a plan to split the revenue in half with Tesla's FSD.
However, Musk himself denied this report. Musk responded on social media, stating that the report was "inaccurate." Musk mentioned that Tesla has learned a lot from discussions with xAI engineers, which has helped accelerate the achievement of unsupervised full self-driving (FSD), but Tesla does not need any authorization from xAI.
xAI, launched by Musk last year as an artificial intelligence company, aims to compete with OpenAI supported by Microsoft (MSFT.US). Concerns have been raised previously about Musk potentially allocating Tesla's resources to xAI. Musk has mentioned that xAI will help advance autonomous driving technology and there is a possibility to integrate xAI's chatbot Grok with Tesla's software.
It is reported that the collaboration between xAI and Tesla will help Musk freely share assets within his business empire. However, several Tesla shareholders have filed lawsuits, claiming that transferring resources to xAI has harmed the investments of the automaker