Elon Musk’s xAI targets revenue sharing deal with Tesla for AI innovation

Elon Musk’s xAI is in talks with Tesla about a revenue-sharing deal that would use xAI’s advanced models to improve Tesla’s self-driving tech and other AI innovations.

xAI, Elon Musk’s AI company, is said to be in talks with Tesla about a deal that would give xAI a cut of Tesla’s future profits.

According to the Wall Street Journal, Tesla would improve its self-driving systems and other benefits by using xAI’s technology. Along with Tesla’s board, Musk said in July that they were thinking about investing $5 billion in xAI. As part of the planned deal, Tesla would license xAI’s AI models to make its self-driving features better, and xAI would get a cut of the money made.

Additionally, xAI would help Tesla build new features, such as a voice helper for its cars and software for its Optimus humanoid robot.

The terms of the revenue-sharing deal would depend on how much Tesla depends on xAI’s technology versus its own. There have been talks about the chance of splitting the profits from Tesla’s self-driving technology equally.

Musk created xAI last year as a competitor to OpenAI. He has said that xAI could help Tesla improve its self-driving technology, build a new data center, and add xAI’s robot Grok to Tesla’s software.