Tesla Will Not Licence xAI Models, Says Elon Musk

Why Trust Techopedia
Key Takeaways

  • Elon Musk dismissed a WSJ report stating that xAI was about to enter a licensing agreement with Tesla.
  • The billionaire tech mogul posted on X to say the story was "not accurate", despite recently leading Tesla board discussions on a potential $5b investment in xAI.
  • This week, the company went live with its Colossus supercomputer, comprising 100,000 Nvidia GPUs. It is designed to train AI models, fully operational by the end of next year.

Tesla chief Elon Musk has refuted media reports that his artificial intelligence firm xAI will give the EV maker access to its technology resources in return for a share of future Tesla revenue. 

The owner of both entities, who also controls the social media platform X, sought to put the record straight after the Wall Street Journal claimed talks had taken place for Tesla to license xAI’s models.

It was claimed the AI startup’s assets would be utilized to bolster Tesla’s driver assistance software and full self-driving tech with proceeds of the venture to be shared.

Musk posted on his X account late on Saturday, outlining there is “no need to license anything from xAI.”

The WSJ also claimed that xAI would support Tesla in other development areas, including software for its humanoid robot Optimus.

Despite the denials on the licensing of xAI models, Musk stated a few weeks ago he would lead discussions with the Tesla board on a potential $5 billion investment in xAI.

Lawsuits For and Against Elon Musk

xAI was launched in 2023 to challenge OpenAI, the company Musk set up in 2015 with Sam Altman, Greg Brockman, and other researchers.

An ongoing feud between the Tesla boss and his former partner Altman, the current CEO of OpenAI, has seen the recent revival of a lawsuit against the AI heavyweight, which was subsequently dropped.

The on-off saga centers around Musk’s allegations that the ChatGPT maker (including Altman and Brockman) violated the company’s initial mission of developing artificial general intelligence (AGI) to benefit humanity.

The claim is that the focus has been shifted toward commercial interests and profit, betraying the original ethos.

In the last week, xAI commenced operations of its new Colossus supercomputer with 100,000 Nvidia H100 GPUs in Memphis, Tennessee. The feat comes after Tesla shareholders sued Musk for starting xAI.