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Musk’s xAI Partners With Tesla: AI Tech For Revenue Sharing

Musk's xAI Partners With Tesla: AI Tech For Revenue Sharing

Elon Musk’s artificial intelligence startup, xAI, is reportedly exploring a collaboration agreement with Tesla that would allow the automotive company to utilize xAI’s advanced AI technologies. In exchange, Tesla would share a portion of its revenues with xAI.

According to a draft of the agreement, Tesla aims to implement xAI’s AI models to enhance its Full Self-Driving (FSD) capabilities, committing to share some of the resulting income with xAI. Additionally, xAI is expected to contribute to Tesla’s other innovative projects, including the development of an advanced in-car voice interaction system similar to Siri and providing essential software support for Tesla’s humanoid robot, Optimus.

The terms regarding the revenue sharing arrangement are said to be contingent on an evaluation of Tesla’s dependence on xAI’s technologies compared to its own. Management at xAI has expressed a desire to achieve an equitable revenue-sharing model with Tesla for the FSD project.

  • Rebecca Fraser

    Rebecca covers all aspects of Mac and PC technology, including PC gaming and peripherals, at Digital Phablet. Over the previous ten years, she built multiple desktop PCs for gaming and content production, despite her educational background in prosthetics and model-making. Playing video and tabletop games, occasionally broadcasting to everyone's dismay, she enjoys dabbling in digital art and 3D printing.

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