Elon Musk’s AI startup xAI will equip Tesla with its developments in exchange for a share of the revenue

Citing a source, the publication reports that the financial terms of the revenue-sharing agreement between xAI and Tesla will depend on the volume of use of xAI technologies in the development of the driver assistance software: Full Self-Driving.

It is assumed that xAI It will be useful not only for equipping FSD, but will also help develop other functions for Tesla: including the implementation of the Siri voice assistant in its electric vehicles and the programming of the Optimus robot.

The news got somewhat lost in the context of Musk’s claim that in two years the first unmanned spacecraft will go to Mars, and in four more years the first manned ones will arrive.

Behind these statements, perhaps the 14% drop in Tesla shares over the year (as of Friday evening) has not been noticed. Competition in the electric vehicle market is growing, so Musk needs to convince users of his company’s potential.

In developing Tesla, Musk relied on robotics and artificial intelligence. For example, the company promises to present a robotaxi on October 10. And the billionaire himself has repeatedly stated that Tesla “will be worthless” without FSD/

Formalizing a partnership with xAI, in which Tesla would transfer a portion of its revenue and future AI developments to a separate company controlled by Musk, would expand the practice of freely distributing the tech mogul’s assets across his business empire, experts say.

Musk has previously transferred talent and technology between xAI and Tesla, to the dismay of many shareholders, filed lawsuits alleging that the transfer of resources to xAI harmed the carmaker’s investors.

xAI is known to have hired several Tesla employees, including those from the Autopilot team. Musk also donated thousands of Nvidia processors from Tesla’s warehouse for xAI needs, and in the summer asked X subscribers whether Tesla should invest $5 billion in xAI.

In May of this year, xAI raised $6 billion in $24 billion valuation from Sequoia Capital, Andreessen Horowitz, Valor Equity Partners, as well as Saudi Prince Alwaleed bin Talal and Kingdom Holding. And on September 4, the company just launched the new Colossus data center, which it says Mask is “the world’s most powerful AI training system.”