Elon Musk’s xAI seeks revenue share deal with Tesla for advanced AI technologyTesla would use xAI’s technology to enhance its full self-driving systems and other features in return

Elon Musk’s xAI seeks revenue share deal with Tesla for advanced AI technology

Elon Musk’s AI company, xAI, is reportedly negotiating with Tesla about a deal where xAI would earn a share of future Tesla revenue.

As per the Wall Street Journal, Tesla would use xAI’s technology to enhance its full self-driving systems and other features in return.

In July, Musk indicated that he and Tesla’s board were considering a $5 billion investment in xAI.

Under the proposed arrangement, Tesla would license xAI’s AI models to improve its self-driving capabilities, with xAI receiving a portion of the generated revenue.

xAI would also assist in developing additional features for Tesla, including a voice assistant for its cars and software for its humanoid robot, Optimus.

The specifics of the revenue-sharing agreement would be influenced by how much Tesla relies on xAI’s technology compared to its own.

Discussions have included the possibility of an equal revenue split from Tesla’s self-driving technology.

Musk launched xAI last year to rival OpenAI and has stated that xAI could support advancements in Tesla’s self-driving tech and help with a new data center, as well as integrate xAI’s chatbot, Grok, into Tesla’s software.