Elon Musk says Tesla doesn’t need to license xAI models.

Elon Musk has dismissed recent reports suggesting that Tesla is considering licensing AI models from his separate company, xAI. In a tweet, Musk stated that Tesla has "no need to license anything from xAI," emphasizing that the two companies have distinct AI development strategies.

While Tesla has benefited from discussions with engineers at xAI, Musk clarified that the AI models developed by xAI are too large and computationally intensive to be practical for use in Tesla's vehicles. The automaker has its own AI models that are specifically designed for real-world driving and can run on lower-power computers.

Musk's denial of licensing talks between Tesla and xAI comes after a Wall Street Journal report claimed that the two companies were discussing a potential arrangement. The report suggested that Tesla would license xAI's AI models to help power its driver-assistance software and full self-driving technology, with xAI receiving a share of the revenue.

Despite denying the licensing talks, Musk has acknowledged that there are opportunities to integrate xAI's technology with Tesla's software, such as its chatbot Grok. However, he has emphasized that Tesla's AI models are more efficient and tailored to the specific requirements of autonomous driving.

The clarification from Musk puts an end to speculation about a potential licensing deal between Tesla and xAI. While the two companies may collaborate on other projects in the future, it appears that Tesla will continue to rely on its own AI development efforts for its autonomous driving technology.