Elon Musk's xAI and Tesla Forge Strategic Partnership

Elon Musk's AI startup xAI is in talks for a revenue-sharing deal with Tesla, where xAI provides technology and resources to enhance Tesla's self-driving capabilities. Tesla would license xAI's AI models in exchange for a share in revenue, as reported by the Wall Street Journal.

Elon Musk's AI startup xAI is negotiating a strategic partnership with Tesla that could see mutual benefits for both companies. According to the Wall Street Journal, the deal would allow Tesla access to xAI's cutting-edge technology and resources.

In return, xAI would receive a share of the revenue generated by licensing its artificial intelligence models to Tesla. This licensing deal is expected to help power Tesla's full self-driving technology.

Sources familiar with the talks have revealed that the proposal has been detailed to potential investors, outlining significant synergies between the two companies.

(With inputs from agencies.)