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tesla shareholder meeting 2024 1

Introduction

A recent report by The Wall Street Journal has sparked controversy surrounding the relationship between Elon Musk’s companies, Tesla and xAI. According to the report, Tesla has discussed sharing revenue with xAI so that it can use the startup’s AI models in its driver-assistance software, known as Full Self-Driving (FSD). However, Musk has denied these claims on his social media platform X.

The Alleged Agreement

The Wall Street Journal reported that under a proposed agreement described to investors, Tesla would use xAI models in FSD. Additionally, xAI would assist in developing features such as voice assistants in Tesla vehicles and software for the company’s humanoid robot, Optimus. This collaboration has sparked concerns among Tesla shareholders who have sued Musk over the decision to start xAI.

Musk’s Response

Musk took to his social media platform X to address the report, stating that he hadn’t read the article but described a post summarizing the report as "not accurate." He emphasized that while discussions with engineers at xAI had accelerated the development of unsupervised FSD, there was no need for Tesla to license anything from xAI.

The Significance of xAI Models

Musk highlighted the enormous size of xAI’s models, which contain most of human knowledge in compressed form. He noted that these models are too large to run on the Tesla vehicle inference computer and wouldn’t be desirable even if they could.

Background Information on xAI

As a competitor to OpenAI, which Musk co-founded but eventually left, xAI has outlined a vision where its models would be trained on data from various companies owned by Musk, including Tesla. The startup’s $6 billion funding round included this ambitious goal of improving technology across these companies.

Shareholder Concerns

Tesla shareholders have been vocal about their concerns regarding the diversion of talent and resources to xAI, which they see as a competing company. This has led to lawsuits against Musk over his decision to start xAI.

The Response from Elon Musk

  • Haven’t read the article, but the above is not accurate.
  • Tesla has learned a lot from discussions with engineers at xAI that have helped accelerate achieving unsupervised FSD, but there is no need to license anything from xAI.
  • 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.

Conclusion

The controversy surrounding the alleged revenue sharing agreement between Tesla and xAI has brought attention to the complex relationships within Musk’s companies. While Musk has denied these claims, it remains to be seen how this will affect the development of AI models in the automotive industry.

Key Takeaways

  • The Wall Street Journal reported that Tesla discussed sharing revenue with xAI for its AI models.
  • Elon Musk denied these claims on his social media platform X.
  • Musk emphasized that discussions with xAI had accelerated the development of unsupervised FSD, but there was no need to license anything from xAI.
  • The significance of xAI’s models lies in their enormous size, which makes them impractical for use in Tesla vehicles.
  • Shareholders have raised concerns about the diversion of resources and talent to xAI.

Additional Reading

For more information on the intersection of AI and automotive technology, consider reading:

  • "The Future of Autonomous Vehicles: How AI is Revolutionizing the Industry"
  • "The Role of AI in Improving Driver Assistance Systems"

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