In a recent development, entrepreneur Elon Musk has refuted claims that his electric vehicle company, Tesla, has been discussing revenue sharing with xAI, another company under his leadership. The Wall Street Journal had reported that a proposed agreement entailed Tesla utilizing xAI's AI models for its Full Self-Driving (FSD) software, along with collaborative efforts to develop features for Tesla vehicles and its humanoid robot, Optimus.

Taking to his social media platform X (formerly Twitter), Musk addressed the report, stating that he had not read the article but deemed a post summarizing it as "not accurate." He acknowledged the valuable insights gained from discussions with xAI engineers, which had aided in advancing unsupervised FSD capabilities. However, he clarified that there was no necessity to license anything from xAI for Tesla.

According to Musk, the sheer size of xAI models, compressing a vast amount of human knowledge, renders them impractical for running on Tesla's vehicle inference computer. He emphasized that it wouldn't be desirable either. The entrepreneur founded xAI as a competitor to OpenAI, an organization he co-founded earlier but eventually departed from.

Earlier this year, TechCrunch reported that xAI sought to raise $6 billion in funding, elucidating its vision of training models on data from Musk's diverse ventures, including Tesla, SpaceX, The Boring Company, Neuralink, and X. The aim was to leverage these models to enhance technology across the various enterprises.

However, shareholders of Tesla have filed a lawsuit against Musk, asserting that the creation of xAI diverted resources and talent away from Tesla, effectively creating a competing company. The legal action, prompted by concerns over potential conflicts of interest, reflects the shareholders' dissatisfaction with Musk's involvement in xAI.

Despite the lawsuit, Musk stands firm on his stance that Tesla has benefited from the collaborative discussions with xAI engineers, bolstering progress in the field of unsupervised FSD. The denial of revenue sharing agreements underscores Tesla's independence in terms of AI capabilities and affirms Musk's confidence in his company's trajectory.

As the world eagerly awaits further developments in the realm of autonomous driving and artificial intelligence, the relationship between Tesla and xAI remains a topic of interest, with implications for the future of next-generation technologies in the automotive industry and beyond.