Since Musk founded his artificial intelligence company, xAI, there has always been concern in the industry that the world's richest man may shift more of Tesla's resources to this startup. And last weekend, the American media, led by The Wall Street Journal, revealed that xAI has been discussing a deal - under the deal, xAI will receive part of Tesla's income in exchange for $Tesla (TSLA.US)$ using its technology and resources. This is the latest example of the increasingly close connection between Musk's two companies.

However, Elon Musk directly denied the relevant reports without any hesitation on Sunday, and angrily rebuked The Wall Street Journal for talking nonsense.

According to The Wall Street Journal, citing so-called insiders' initial revelations, under a proposed arrangement, Tesla would obtain xAI's artificial intelligence model authorization to help Tesla further develop its fully automated driving assistance system named FSD, and Tesla would then share a portion of the related revenue with this startup.

The aforementioned insiders also stated that xAI will assist Tesla in developing other features, including a smart voice assistant similar to Apple's Siri intended to be integrated into electric cars, and software to support its humanoid robot Optimus.

Insiders said that the terms of any revenue sharing agreement between xAI and Tesla will partly depend on Tesla's reliance on xAI's technology. xAI executives have already discussed the issue of revenue sharing from Tesla's FSD.

For a long time, Elon Musk has placed Tesla's future in humanoid robots and artificial intelligence. Musk has long promised that the progress of FSD will be enough to enable all Tesla autos to achieve full self-driving, and once successful, Tesla will become a mammoth company worth trillions. Musk also pointed out that without full self-driving, Tesla's value is 'basically zero.'

If indeed a formal partnership is established with xAI as disclosed, handing over a part of Tesla's revenue and future artificial intelligence development to an independent company controlled by Musk will further advance the vision of this tech tycoon freely sharing assets in his 'business empire'.

In fact, over the past year and more, xAI has already started hiring employees from Tesla, including several employees working directly on the development of the Autopilot team. Last year, Musk also transferred thousands of GPUs from Tesla to xAI. When this move was exposed, Musk explained at that time that Tesla didn't have much use for these chips, so they could only be stored in the warehouse.$NVIDIA (NVDA.US)$In fact, over the past year and more, xAI has already started hiring employees from Tesla, including several employees working directly on the development of the Autopilot team. Last year, Musk also transferred thousands of GPUs from Tesla to xAI. When this move was exposed, Musk explained at that time that Tesla didn't have much use for these chips, so they could only be stored in the warehouse.

In a tweet in July of this year, Musk also asked X users whether Tesla should invest $5 billion in siasun robot&automation. Two days later, he posted again, saying, 'It seems that the public is supportive. We will discuss this with the Tesla board of directors.'

However, Musk's practice of transferring talent and hardware between siasun robot&automation and Tesla has also raised concerns among many people about potential conflicts of interest. How Musk shares Tesla's resources has always been a focus of attention, as Tesla is a publicly traded company. Some Tesla shareholders have previously filed lawsuits claiming that transferring resources to siasun robot&automation has harmed the interests of this automaker's investors. These cases are currently being heard in the Delaware Chancery Court.

Musk's response: Nonsense!

As for the latest revelations from The Wall Street Journal, Musk responded on the X platform on Sunday, Beijing time, saying, 'I haven't read this article yet, but the content mentioned in it is not accurate.'

Musk said that Tesla has learned a lot from discussions with siasun robot&automation engineers, which helps accelerate the realization of FSD, but there is no need to obtain any authorization from siasun robot&automation. The siasun robot&automation models are very large and contain most of human knowledge in a compressed form, which is impossible to run on the reasoning computer of Tesla vehicles, and we don't want that either.

Shortly after, Musk tweeted again, saying, 'How many false articles about Tesla have you seen so far? 100 articles, 1000 articles, or several thousand articles?'

'The Wall Street Journal is talking nonsense,' said Musk.

It is worth mentioning that Elon Musk stated in April this year at the Tesla earnings conference that Tesla will invest $10 billion in capital expenditure this year to enhance its artificial intelligence capabilities. Musk then said, "If someone does not believe that Tesla will solve the autonomous driving problem, I don't think they should be shareholders of the company."

In the AI field, xAI was valued at $24 billion in May, raising another $6 billion in funding, with investors including Sequoia Capital, Andreessen Horowitz, Valor Equity Partners, and a investment company under Saudi Prince Alwaleed bin Talal's Kingdom Holding. This month, the company launched a datacenter called Colossus in Tennessee, which Musk described as the "most powerful AI training system in the world."

Insiders familiar with the matter said that xAI and Tesla's employees provided advice to each other on the design and construction of the datacenter.

Editor/Rocky