Elon Musk’s xAI startup intends to make money on Tesla autopilot

While activists criticize Elon Musk for too freely redistributing resources between the companies he leads, the youngest of them, the startup xAI, made the oldest, Tesla, an offer related to the participation of the former in improving the software of the latter in exchange for a portion of the proceeds automaker.

Image Source: Tesla

At the very least, a proposal to use xAI algorithms to improve Tesla’s autopilot was at the discussion stage, as The Wall Street Journal notes, citing its own sources. Along the way, xAI expressed its readiness to take part in the development of a voice assistant for Tesla electric vehicles, as well as software for Tesla Optimus humanoid robots. Tesla’s reliance on xAI algorithms and models would determine the proportion in which the companies would share revenue. The most ambitious plan implied a 50:50 ratio.

Elon Musk has indeed made no secret of his intentions to integrate xAI’s Grok chatbot into Tesla software, as well as to use the startup’s know-how in the construction and operation of the automaker’s data center. In July, Musk presented to the public the idea of ​​investing $5 billion in xAI capital, to which funds from Tesla should be allocated. In other words, the billionaire is trying in every possible way to achieve symbiosis between the companies he owns or partially controls, although this is not always liked by the shareholders of Tesla, which is public.