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Elon Musk\u2019s artificial intelligence startup xAI could assist in the development of key Tesla initiatives and share in some of the EV maker\u2019s revenue, sources told the Wall Street Journal<\/em><\/a>.<\/p>\n A proposal that has been shown to investors calls for Tesla to license xAI\u2019s AI models to help power Full Self-Driving (FSD), which is the company\u2019s driver-assistance software, as well as a Siri-like voice assistant and its Optimus humanoid robot, according to the report.<\/p>\n The amount of revenue that Tesla shares with xAI would depend on how much of the startup\u2019s technology is used, though xAI has discussed an even split for FSD, the report added. <\/p>\n Representatives for xAI have also told investors that it\u2019s a future provider of critical technologies for Tesla\u2019s software products, sources told the WSJ<\/em>.<\/p>\n Tesla and xAI didn\u2019t immediately respond to requests for comment.<\/p>\n The discussions about a Tesla revenue-sharing deal comes as xAI is flush with capital and ramps up its own projects.<\/p>\n In May, xAI raised $6 billion<\/a> from Andreessen Horowitz, Sequoia Capital, and Saudi Prince Alwaleed Bin Talal, among others. And last weekend, xAI\u00a0brought online a new supercomputer dubbed Colossus<\/a>, which is designed to train its large language model known as Grok, a rival to OpenAI\u2019s GPT-4.\u00a0<\/p>\n While Grok is only available to paying subscribers of Musk\u2019s\u00a0social media platform X<\/a>, many\u00a0Tesla<\/a>\u00a0experts believe it will eventually form the artificial intelligence powering\u00a0Optimus<\/a>. <\/p>\n Musk himself has raised the prospect of deeper ties between xAI and Tesla, saying in July he would discuss with the carmaker\u2019s board a potential $5 billion investment<\/a> in his AI startup. And on an earnings call that month, he told analysts that xAI had already been \u201chelpful in advancing Full Self-Driving and in building up the new Tesla data center.\u201d<\/p>\n But Musk\u2019s practice of bringing his various companies closer together has been controversial with some investors and lawmakers. In June, he acknowledged diverting Nvidia chips<\/a> designed to train neural networks from\u00a0Tesla<\/a>\u00a0to X and xAI.\u00a0<\/p>\n \u201cTesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse,\u201d he posted on X<\/a>.\u00a0<\/p>\n Meanwhile, Musk increasingly sees autonomy as key to Tesla\u2019s future and has said the company will spend $10 billion this year on AI. The company also will reportedly unveil its\u00a0highly anticipated robotaxi<\/a>\u00a0at an event in October. <\/p>\n Tesla bulls like Ark Investment\u2019s Cathie Wood see robotaxis as foundational to the company\u2019s valuation and potential upside. In July, she predicted an autonomous taxi platform will be the catalyst for a 10-fold increase in Tesla\u2019s stock price.<\/p>\n \u201cAutonomous taxi platforms are the biggest AI project evolving today,\u201d she told Bloomberg TV.<\/p>\n<\/div>\n\nRecommended reading:<\/strong>
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