xAI Will Not License Its Tech to Tesla, Elon Musk Says, Debunking WSJ Claims

xAI Will Not License Its Tech to Tesla, Elon Musk Says, Debunking WSJ Claims

Elon Musk has refuted claims made in a Wall Street Journal article, which stated that Tesla would be licensing artificial intelligence (AI) technology from Musk’s startup xAI.

According to the article, published on Sept. 7 and citing anonymous sources, Tesla would use AI models developed by xAI to power its driver assistance software, Full Self-Driving (FSD). As part of the deal, xAI would be entitled to a part of Tesla’s revenue.

Under the arrangement, xAI would also help Tesla develop other features, including a Siri-like voice assistant, the article noted.

According to the article, Tesla and xAI executives have agreed to evenly split revenue generated from FSD, which costs users $99 per month.

Musk, however, stated in an X post on Sunday that Tesla executives gained crucial knowledge from xAI engineers that helped them develop FSD and propel the company toward making cars fully autonomous. However, “there is no need to license anything from xAI,” he added.

He continued:

“The xAI models are gigantic, containing, in compressed form, most of human knowledge, and couldn’t possibly run on the Tesla vehicle inference computer, nor would we want them to.”

Musk said that the Tesla AI models are “incredibly “dense” (in a good way lol) intelligence.” This is because the AI models have to compress and translate videos of roads and real world into driving commands in real-time. At the same time, they have to be small enough to run on a much smaller computer with size and bandwidth restrictions.

Musk added:

“Tesla real-world AI also has a vastly larger context size than an LLM, as the combined video history from all cameras is several gigabytes in size.”

Musk founded xAI in July 2023. Although relatively new, Musk believes the company has the potential to become a significant contender in the field. Earlier this month, the xAI team brought its Colossus 100,000 H100 training cluster online. Over the next few months, it is expected to double in size.

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