Musk's xAI in talks to share future Tesla profits, reports WSJ via Reuters
(Reuters) – Elon Musk's AI startup xAI is in talks for a future share of Tesla (NASDAQ: .
Tesla will license xAI artificial intelligence models to help power fully self-driving technology and share some of that revenue when it launches, according to a proposed plan as described to investors, the newspaper said.
xAI will also support the development of other Tesla features, including the voice assistant in its electric vehicles and the software to power its Optimus humanoid robot, the Journal said, citing unnamed people familiar with the matter.
The terms of any profit-sharing agreement between xAI and Tesla will depend in part on how much Tesla relies on xAI's technology instead of its own, the report said, adding that xAI executives have discussed a revenue split with Tesla's FSD.
Tesla did not immediately respond to Reuters' request for comment, while xAI could not be reached.
Musk launched xAI last year to compete with Microsoft-backed OpenAI. It has sparked concern that he may hand over some of the automaker's services to an AI company.
He said that xAI “will be useful in developing full self-driving and in building Tesla's new data center,” adding that there were opportunities to integrate xAI's chatbot, Grok, and Tesla's software.
In July, the billionaire CEO said he and Tesla's board would discuss a $5 billion investment in xAI.
