Musk refutes reports of Tesla revenue-sharing deal with xAI, says 'not accurate'

‘Tesla has learned a lot from discussions with engineers at xAI and helped accelerate achieving unsupervised FSD,’ says Musk
An undated image of Elon Musk. — Getty Images/ Canva
An undated image of Elon Musk. — Getty Images/ Canva

Elon Musk refuted reports regarding his artificial intelligence (AI) startup xAI has had discussions for shares in future Tesla revenue, saying it’s “not accurate” in consideration of offering Musk's (electric) e-vehicle manufacturer to xAI's technology and resources.

According to the Wall Street Journal (WSJ), Tesla would licence xAI's artificial intelligence entities to strengthen its driver-assistance software, and full self-driving technology, and share some of the revenue with the startup. 

Musk took to X (Formerly Twitter) on Saturday (September 7), refuting the report and stated: "Tesla has learned a lot from discussions with engineers at xAI that have helped accelerate achieving unsupervised FSD, but there is no need to licence anything from xAI."

Read more: Elon Musk to hire technicians, engineers for Tesla, xAI

WSJ further said that xAI would assist in introducing other cutting-edge features for Tesla, such as voice assistant in e-vehicles and software to strengthen its humanoid robot Optimus.

Reports suggested that any revenue-sharing details between xAI and Tesla would rely on how Tesla depends on xAI's technology in contrast to its own, adding that top officials from xAI have already had a conversation about evenly splitting revenue from Tesla’s Full Self-Driving (FSD).

Additionally, xAI last year challenged OpenAI, which has raised concerns that Musk is likely to issue a few resources of the auto manufacturer to the AI company.