Elon Musk Clarifies Tesla Won’t Pay xAI for AI Technology

As a seasoned crypto investor with a keen eye for tech trends, this clarification from Elon Musk about xAI and Tesla has piqued my interest. Having followed his ventures closely over the years, I’ve learned to trust his transparency and technical expertise.


Elon Musk, head of social media platform X and Tesla’s CEO, has emphasized that his emerging AI company, xAI, does not intend to generate revenue by providing its technology to Tesla for use.

According to a report from The Wall Street Journal, it appears that there may be collaboration between xAI and Tesla, with the possibility of xAI receiving compensation for providing its sophisticated AI technologies.

On September 8, Musk expressed on X (previously known as Twitter) that the technology from xAI is so sophisticated it’s not suitable for integration into Tesla vehicles at this time.

I haven’t gone through the article, but what I understand is not entirely correct. Tesla has gained valuable insights from conversations with engineers at xAI, which have contributed to faster progress in achieving unsupervised Full Self-Driving (FSD). However, there’s no requirement for Tesla to acquire any licenses from xAI.

— Elon Musk (@elonmusk) September 8, 2024

He stated that the xAI models are extremely large, condensing a significant amount of human wisdom into their structure, which is beyond the capabilities of the Tesla vehicle’s inference computer to handle, and it wouldn’t be desirable for them to do so.

Nevertheless, Musk acknowledged that Tesla has gained useful knowledge from exchanges with engineers at xAI. These interactions have contributed to the advancement of Tesla’s Full Self-Driving (FSD) system, a feature designed for cars to operate autonomously. However, it’s important to note that Tesla doesn’t rely on xAI’s technology to reach this goal.

Besides discussing his wealth, the tycoon additionally disclosed insights into Tesla’s artificial intelligence functionalities. For example, Tesla’s AI systems convert raw video footage from the real world into driving instructions and are engineered to operate efficiently on computers that have lower processing power compared to those used by companies like xAI.

In July 2023, Musk established xAI as a potential rival to well-known AI firms such as OpenAI. Additionally, he revealed that their latest supercomputer, named Colossus, has recently gone online and is expected to expand its power in the near future.

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2024-09-08 17:42