- Musk confirmed xAI won’t earn revenue from Tesla, clarifying no licensing deals are needed for FSD tech.
- Tesla’s FSD benefited from xAI engineers, but Musk says no revenue-sharing agreements are planned between the two companies.
- xAI’s powerful Colossus cluster supports AI growth, yet Musk insists Tesla does not need xAI for its vehicle systems.
Elon Musk has clarified that xAI, his artificial intelligence startup, is not seeking to earn revenue from Tesla in exchange for sharing its technology. This statement follows a Wall Street Journal report suggesting potential revenue discussions between xAI and Tesla regarding technology sharing.
Musk emphasized that xAI’s AI models are too large to run on Tesla’s vehicle inference computer. Besides, he said Tesla does not need to license xAI’s technology for its Full Self-Driving (FSD) system.
Tesla’s AI models already excel at transforming world video feeds into driving commands. These models operate efficiently on Tesla’s 300W computer, which offers less power than high-end GPUs.
Tesla Benefits from xAI Expertise Without Licensing
Moreover, Musk acknowledged that Tesla’s FSD has benefited from knowledge shared by engineers at xAI. However, he confirmed no need for licensing agreements between the two entities. Consequently, any speculation about revenue-sharing agreements between xAI and Tesla appears misplaced.
In addition, Musk stated that Tesla’s real-world AI handles much larger context sizes than large language models (LLMs) due to the extensive data gathered from vehicle cameras. This further highlights the distinct capabilities of Tesla’s systems.
xAI’s Rapid Growth in AI Innovation
Since its founding in July 2023, xAI has made strides in the AI industry. Musk revealed that the xAI team recently brought its Colossus H100 training cluster online, with plans to double its capacity. Colossus, powered by Nvidia GPUs, is now considered the most powerful AI training system globally.
Musk also addressed speculations about the future. He clarified that while xAI’s technology may assist in Tesla’s product development, such as enhancing its voice assistant or humanoid robot Optimus, xAI’s core business does not depend on Tesla.
Meanwhile, former President Donald Trump has indicated his support for Musk, naming him as a potential head of a new government efficiency commission if Trump wins the 2024 election. Musk responded positively, noting that he would serve without compensation or title if given the opportunity.
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