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.
