Elon Musk’s xAI to Boost Tesla’s FSD and Siri-like Features

Elon Musk's xAI startup is in discussions to license its AI models to Tesla, aiming to enhance the company's Full Self-Driving (FSD) software, a Siri-like voice assistant, and the Optimus humanoid robot. The revenue-sharing model proposed could see Tesla and xAI splitting earnings based on the technology utilized, with an even split suggested for FSD. This collaboration comes as xAI has recently secured $6 billion in funding and launched a new supercomputer, Colossus, to develop its large language model, Grok. Musk has indicated that xAI's technology is crucial for Tesla's software products, and he has previously mentioned a potential $5 billion investment in xAI. The integration of xAI's capabilities is seen as vital for advancing Tesla's autonomous driving features and enhancing its data center operations. However, Musk's strategy of intertwining his companies has raised concerns among some investors and lawmakers. In June, Musk acknowledged reallocating Nvidia chips from Tesla to xAI and X, emphasizing the need to utilize resources effectively. As Tesla focuses on autonomy, it plans to invest $10 billion in AI this year, with expectations of unveiling a robo-taxi in October. This autonomous taxi platform is viewed as a significant driver for Tesla's future valuation, with predictions of a substantial increase in stock price. The developments at xAI and Tesla reflect a broader trend in the tech industry, where AI advancements are becoming increasingly critical for automotive innovation and market competitiveness. The collaboration could position both companies at the forefront of AI-driven transportation solutions.