Musk denies xAI-Tesla collaboration claims on AI technology

The CEO of Tesla has denied claims that his AI startup xAI had entered discussions to share future Tesla revenue in exchange for giving the automaker access to its technology. The Wall Street Journal reported that Tesla was considering licensing xAI’s artificial intelligence models to enhance its full self-driving software and splitting revenue with the startup.

Musk refuted the report, stating that although Tesla had benefited from conversations with xAI engineers, there was no need to license any technology. He called the article ‘not accurate’ in a post on social media platform X.

The Journal’s report suggested that xAI could also help Tesla develop other features, such as a voice assistant for its electric vehicles and software for its humanoid robot, Optimus. Musk has previously mentioned that xAI could play a role in advancing Tesla’s self-driving capabilities and building a new data centre.

The billionaire launched xAI last year to rival OpenAI, with plans to integrate its AI chatbot, Grok, into Tesla’s systems. Discussions have reportedly taken place regarding a potential $5 billion investment in xAI by Tesla.