Elon Musk’s AI Startup xAI Not to Generate Revenue from Tesla, Targets OpenAI Competition

Elon Musk, the visionary entrepreneur and owner of the social media platform X, has recently clarified that his artificial intelligence startup, xAI, has no intention of generating revenue from Tesla in exchange for sharing its advanced technology.

This clarification was prompted by a Wall Street Journal report suggesting that xAI had engaged in discussions about sharing its groundbreaking technology with Tesla and potentially earning revenue from the automotive giant in return.

In a detailed post on X dated September 8, Musk explained, “The xAI models are colossal, encompassing, in compressed form, the vast majority of human knowledge. These models are far too extensive to operate on the Tesla vehicle inference computer, nor is there any desire to do so.”

Expanding on Tesla’s Full Self-Driving (FSD) capabilities, Musk further emphasized, “Tesla has gained significant insights from interactions with engineers at xAI, which have accelerated the progress towards achieving unsupervised FSD. However, there is no necessity to license any technology from xAI.”

In related news, OpenAI’s business users have surpassed the one million mark, and the company is targeting premium subscriptions for its ChatGPT service.

Musk elaborated on Tesla’s AI models, highlighting their remarkable intelligence in translating real-world video data into driving commands. These models operate on a 300-watt computer, which has significantly lower memory and bandwidth compared to an H100 graphics processing unit (GPU).

He further noted that Tesla’s real-world AI benefits from a much larger context size than a typical large language model (LLM), owing to the combined video feed from all cameras, which aggregates to several gigabytes of data.

Musk envisions xAI as a formidable competitor to OpenAI. In July 2023, he founded xAI with the ambition of challenging industry leaders like OpenAI. Despite being a relatively new player compared to ChatGPT creator OpenAI, Musk believes xAI has the potential to become a significant competitor by the end of 2024.

On September 2, Musk announced that xAI’s team successfully brought their Colossus 100,000 H100 training cluster online. Over the next few months, this cluster is set to double in size, reaching an impressive 200,000 units.

The Colossus system is now heralded as the most powerful AI training system available, driven by an immense number of GPUs. This state-of-the-art model was developed in collaboration with Nvidia, the world’s leading semiconductor chip manufacturer.

In another intriguing development, former United States President Donald Trump mentioned that if he wins the November 2024 election, he plans to establish a government efficiency commission with Elon Musk at its helm. Trump expressed his intention to appoint Musk as the head of this new government institution without any monetary compensation or formal recognition.

Responding to Trump’s statement, Musk expressed his willingness to serve America if given the opportunity and reiterated that he does not seek any pay, title, or recognition for his service.

On September 5, Trump reiterated his support for the digital asset industry. He pledged that if re-elected, he would eliminate a minimum of ten outdated regulations for every new regulation introduced. Additionally, Trump stated that instead of opposing emerging industries, he aims to embrace them fully. This includes making America the global hub for cryptocurrencies like Bitcoin.

Magazine highlights include a trader turning $3K into $46M in PEPE tokens, an overhaul of Ethereum gas fees, and a Tornado Cash developer pleading guilty. This summary spans events from May 12-18.

  • Priyanka

    Priyanka works in NYC as freelancer editor for one of the famous entertainment news blog.

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