Elon Musk Denies Tesla Will Fund xAI for AI Partnership

September 09, 2024 10:37 PM AEST | By Team Kalkine Media
 Elon Musk Denies Tesla Will Fund xAI for AI Partnership

Elon Musk, owner of the social media platform X, has addressed recent reports regarding his artificial intelligence startup, xAI, and its potential relationship with Tesla. A Wall Street Journal article had suggested that xAI was in discussions to share its technology with {Tesla} {TSLA} n exchange for revenue. Musk has clarified that this is not the case.

In a post on X dated September 8, Musk stated that xAI’s models, which encompass vast amounts of human knowledge in a compressed form, are too large to operate on Tesla’s vehicle inference computer. He emphasized that Tesla’s AI models are specifically designed to convert real-world video data into driving commands using a 300W computer. This setup, Musk noted, is less capable in terms of memory and bandwidth compared to the advanced H100 graphics processing units (GPUs) used in xAI’s systems. He added that Tesla’s AI models benefit from a broader context due to the combined video feeds from multiple cameras, which provide several gigabytes of data.

Musk’s comments come as xAI, founded in July 2023, is gaining traction as a potential competitor to established players like OpenAI. Musk has indicated that xAI could become a formidable competitor by the end of 2024. On September 2, he announced that xAI had launched its Colossus 100,000 H100 training cluster, with plans to expand it to 200,000 GPUs. This system is considered one of the most powerful AI training infrastructures, developed in collaboration with Nvidia, a leading semiconductor manufacturer.

In a separate development, former U.S. President Donald Trump has proposed creating a government efficiency commission with Musk at its helm if he returns to the White House in the November 2024 election. Musk responded by expressing his willingness to contribute to public service without seeking compensation, title, or recognition. Additionally, Trump reiterated his support for the digital asset industry, promising to remove outdated regulations and promote the United States as a global leader in {crypto} currency and Bitcoin if elected.


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