Elon Musk, CEO of both Tesla and the recently founded artificial intelligence company xAI, has denied reports claiming that the two companies have engaged in talks regarding a future revenue-sharing agreement.

According to allegations, the potential deal would see Tesla gaining access to xAI’s advanced technology and resources, with both companies benefiting from even revenue split based on Tesla’s Full Self-Driving (FSD) software. 

While xAI was established to compete with industry giants like OpenAI, there were concerns that Musk might direct resources from Tesla toward his AI venture.

Critics of this potential overlap have raised questions about whether Tesla shareholders and the electric vehicle maker itself might be impacted by these decisions.

Founded in 2023, xAI aims to advance the field of artificial intelligence and position itself as a major competitor to OpenAI, the company behind the popular AI model, ChatGPT. Musk, a co-founder of OpenAI, left the organization in 2018 due to differences in opinion regarding its direction. Since then, he has expressed concerns over the potential risks posed by advanced AI, which he hopes to address through xAI’s research and development.

Despite Musk’s denial of any formal agreement, industry analysts have noted that integrating xAI’s technology into Tesla could provide the automaker with a strategic advantage in developing autonomous driving systems and further refining its FSD software.

 

The possibility of collaboration between Musk’s companies has been a topic of interest since xAI’s launch, with speculation about how xAI’s expertise in AI could enhance Tesla’s product offerings.

 

Musk has repeatedly emphasized his commitment to Tesla’s mission of sustainable transportation, and any resource allocation to xAI, if true, would likely be subject to heavy scrutiny by investors and regulators. As of now, xAI has not commented on the matter, and it remains unclear how closely the two companies will work together in the future. 

For now, Musk’s denial put to rest any immediate concerns about Tesla and xAI striking a formal revenue-sharing deal.