It sounds like Elon said that Tesla work on AI seems to have given them insights into AGI. Tesla over-complicated the problem. This suggests that simplifying and scaling up their systems could be the answer to AGI. I believe this ties in with the recent Tesla work to unify all FSD and Teslabot neural net software and to scale as rapidly as possible to 100 Exaflops.

Tesla and X.AI will work together but in an arms lengths way.
Tesla Hardware 4 will be 3-5 times more capable than Hardware 3 and Hardware 5 will be 4-5X times more capable than Hardware 4.