Tesla CEO Elon Musk has dismissed a report suggesting that Tesla plans to license AI models from his startup, xAI, to enhance its Full Self-Driving (FSD) software and other features like voice assistants. Musk addressed the issue on his social media platform, X (formerly Twitter), after a summary of a Wall Street Journal (WSJ) article surfaced.
The WSJ report claimed that Tesla was in discussions with xAI to share revenue in exchange for using xAI’s advanced AI models in Tesla vehicles and for its humanoid robot Optimus. These AI models would
supposedly assist in refining FSD capabilities and developing new features, including voice-activated controls.
Musk’s Response
Musk swiftly denied the report, stating, “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.” He added that xAI’s AI models are far too large and complex to be run on Tesla’s vehicle computers. “The xAI models are gigantic, containing, in compressed form, most of the human knowledge, and couldn’t possibly run on the Tesla vehicle inference computer, nor would we want them to,” Musk explained.
The WSJ article had previously detailed a proposed agreement, claiming that xAI would develop certain AI-powered features, like voice assistants for Tesla vehicles, and license its models for use in FSD software. Source: Wall Street Journal.
xAI and Its Connection to Tesla
xAI, which Musk launched in 2023, was created as a direct competitor to OpenAI, which he co-founded but later departed. According to earlier reports, xAI raised $6 billion in funding, positioning itself as a leader in the AI space. The company aims to improve technologies across Musk’s ventures, including Tesla, SpaceX, The Boring Company, Neuralink, and X. TechCrunch had previously noted xAI’s ambitions to train its models using data from these companies, potentially benefiting all of them through advanced AI technologies. Source: TechCrunch.
Shareholder Lawsuits
Musk’s decision to start xAI has sparked legal issues. Tesla shareholders filed lawsuits earlier this year, arguing that Musk was diverting Tesla resources—both talent and technology—to xAI, which they consider a competing company. The lawsuit claims that xAI’s growth could negatively impact Tesla’s innovation pipeline. Source: Reuters.
While Musk has attempted to assuage concerns, denying any conflicts of interest between Tesla and xAI, the controversy continues to raise questions about the extent to which xAI will collaborate with Musk’s other ventures.
For now, it appears Tesla will continue to develop its AI systems independently of xAI, despite any benefits it has reaped from discussions with xAI’s engineers.