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Home Markets Crypto Market

Musk Rejects Claims of Tesla Licensing xAI’s Technology for Revenue Sharing Agreements

Monika Ghosh by Monika Ghosh
September 8, 2024
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Musk Rejects Claims of Tesla Licensing xAI’s Technology for Revenue Sharing Agreements
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The intersection of two of the most talked-about territories in tech—artificial intelligence and electric vehicles—has once again taken center stage in the tech community’s discourse, all thanks to Tesla’s CEO Elon Musk and his AI venture, xAI. However, a recent development has spurred discussions and corrections regarding the relationship between Musk’s two ventures. On a bright Sunday, Musk took to X to clarify some swirling rumors: Tesla, his electric car titan, won’t be incorporating technology from his fledgling AI startup, xAI. This announcement directly contradicts a report by the Wall Street Journal published on September 7, suggesting a technological partnership between Tesla and xAI.

What the WSJ Got Wrong

In an exclusive scoop, the Wall Street Journal had earlier posited, based on insider accounts, that a novel collaboration was on the horizon. It stated that Tesla would be integrating AI models developed by xAI into its Full Self-Driving (FSD) software, a driver assistance system heading towards complete autonomy. This partnership purportedly included a revenue-sharing model, enriching both entities.

The report further detailed this symbiosis, indicating that xAI would extend its expertise beyond FSD, potentially crafting a Siri-esque voice assistant for Tesla vehicles. This collaboration, as per the WSJ narrative, was based on an equitable revenue sharing from the FSD subscriptions, priced at USD 99 per month for Tesla users.

Musk Clears the Air

Elon Musk, in his X post, was quick to rectify these assertions. His clarification painted a different picture: Tesla’s trajectory towards full autonomy has indeed benefitted from insights shared by xAI engineers. And yet, the technological leap sought by Tesla for its vehicles doesn’t align with any licensing agreements with xAI.

He humorously remarked:

“The xAI models are gigantic, containing, in compressed form, most of human knowledge, and couldn’t possibly run on the Tesla vehicle inference computer, nor would we want them to.”

Musk emphasized the Tesla AI models’ remarkable density, which he explained as a positive attribute. The core of Tesla’s AI hinges on efficiently decoding real-world visuals into immediate driving commands. This requires not just precision but also a form factor that can snugly fit into the vehicle’s onboard computer systems, which have their own set of limitations pertaining to size and processing capacity.

Adding more to the tech enthusiasts’ curiosity, Musk pointed out:

“Tesla real-world AI also has a vastly larger context size than an LLM, as the combined video history from all cameras is several gigabytes in size.”

xAI’s entry into the AI scene, despite only being founded in July 2023, has come with its set of ambitions and promises. Musk himself has been a proponent of the potential held by xAI, a sentiment bolstered by the recent completion of their Colossus 100,000 H100 training cluster—a feat expected to double its strength shortly.

For those intrigued and seeking more narratives that blend the borders of finance and technology,

DeFi Daily News

is a reservoir of such trending discussions.

Plot Twists in the Tech Ecosphere

Elon Musk’s entanglement with artificial intelligence through his new venture, xAI, and its supposed collaboration with Tesla, may have set industry tongues wagging. The swift clarification by Musk, however, serves not just as a correction but also a peek into the monumental ambitions harbored by both Tesla in automotive AI and xAI in its quest to envelope human knowledge in digital form.

The revelation that Tesla’s FSD, a pinnacle of vehicle autonomy efforts, operates without relying on xAI’s vast AI models, underscores the scope and scale of innovation independently fostered within Tesla. For tech aficionados and industry watchers, this delineation reinforces the fascinating journey of AI’s integration into everyday devices, underscoring the transformative path ahead for autonomous vehicles.

The vast ambition encapsulated in xAI’s endeavor, illustrated by their Colossus cluster and forecasted expansions, signals a significant leap in AI’s capabilities and applications. Musk’s ventures, each in their own stride, seem poised to redefine not just their respective industries but also the interaction between human cognition and artificial intelligence.

Concluding on a High Note

As this saga of technology, ambition, and clarification unfolds, it invites us to marvel at the pace of innovation. Musk’s ventures, each groundbreaking in its domain, offer a glimpse into a future where the lines between artificial intelligence, vehicle autonomy, and human experience blur, crafting a world anew. The spirit of innovation pulses fervently, promising exhilarating rides—both literal and metaphorical—into the future.
And who knows? Maybe tomorrow’s news will bring yet another twist, another invention, bridging dreams and technology ever closer. For that and more, keeping an eye on unfolding stories is key—in tech, as in life, the ride never truly ends.



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