Elon Musk's Strategic Alliance: xAI and Tesla Forge a Futuristic Partnership

Elon Musk's AI startup xAI has held discussions to license its technology to Tesla in exchange for a share in Tesla's future revenue. xAI would support Tesla's full self-driving technology and other features like voice assistant and humanoid robot software. The specific terms of the revenue-sharing are still under negotiation.

Elon Musk's AI startup, xAI, is in discussions with Tesla to share future revenue in exchange for access to xAI's state-of-the-art technology and resources, according to a report from the Wall Street Journal.

The agreement under consideration would see Tesla licensing xAI's artificial-intelligence models to enhance its full self-driving technology. Moreover, xAI would develop additional features for Tesla, including a voice assistant and software for the humanoid robot Optimus. Details were disclosed to investors but not publicly identified.

The specifics of any revenue-sharing deal hinge on the extent to which Tesla utilizes xAI's technology versus its own. The two companies are exploring a potential even revenue split from full self-driving technology. Tesla did not comment immediately, and xAI was unavailable for remarks.

(With inputs from agencies.)