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Musk denies report his xAI in talks over Tesla revenue
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Musk denies report his xAI in talks over Tesla revenue
Sep 7, 2024 10:10 PM

Sept 7 (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.

"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 ( MSFT )-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.

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