Tesla CEO denies report on AI business with xAI for FSD

Tesla CEO, Elon Musk has denied a report on doing formal business with his AI firm xAI to advance FSD’s self-driving technology.

WSJ reported that xAI is in conversation with Tesla to get some revenue in exchange for sharing its computing technology and resources.

It is also mentioned that the company is already in search of more AI-processing technology to improve its interconnected car infrastructure. Furthermore, xAI could also be integrated into EVs for advanced natural conversation and humanoid Optimus robots.

Shortly after, the Tesla CEO denied this report and said the EV maker’s team has been working closely with xAI engineers to accelerate the development of unsupervised FSD. Therefore, it doesn’t have to do formal business with xAI or license its AI technology, wrote Musk on the social media site X.

FSD currently operates as ‘supervised’ technology, which means the car can drive automatically but a driver is required to take the steering wheel in complex situations. Unsupervised means, FSD will no longer require driver’s intervention.

“The Tesla AI models have incredibly “dense” (in a good way lol) intelligence, as they compress video of reality into driving commands, but must operate on a ~300W computer with memory size and bandwidth far lower than say an H100 GPU,” said Musk.

A few months ago, xAI revealed one of the largest AI supercomputers with more than 100,000 H100 AI chipsets. The company has been using this computing power for the Grok 2 chatbot.

Tesla is also building a new AI cluster with an H100 AI chipset to improve FSD training and data processing.

The EV firm is expanding its gigafactory facility to house the new AI data center and will be online by this year. It is also expanding AI capabilities to support future products including the Robotaxi, which will be unveiled in October.