Musk Asks X Followers If Tesla Should Sink $5 Billion Into xAI
Musk posted the one-line question on his X handle shortly after Tesla reported a fourth straight quarter of disappointing profit.
(Bloomberg) -- Elon Musk is asking his X followers whether Tesla Inc. should invest $5 billion into his own AI startup, saying he was “testing the waters” for a potential deal.
The billionaire posted the one-line question on his X handle shortly after Tesla reported a fourth straight quarter of disappointing profit. On a post-earnings call, Musk was asked about the possibility of the electric car maker investing in xAI or integrating the Grok chatbot into Tesla software.
“Tesla is learning quite a bit from xAI,” Musk told Wall Street analysts. “It’s been actually helpful in advancing full self-driving and in building up the new Tesla data center.”
Musk then said he was supportive of the idea of Tesla investing in xAI if there was shareholder approval. He tweeted out his poll on the matter Tuesday night.
Musk’s xAI, founded in 2023, raised some $6 billion in a funding round this year that valued the startup at around $18 billion before the deal. Sequoia Capital and Andreessen Horowitz were among the backers in one of the biggest investments so far in generative AI.
On X, Musk stipulated that the valuation of any future deal would have to be set by “credible” outside investors.
Musk, who oversees six companies, has come under fire for conflicting interests. In June, the billionaire confirmed he diverted scarce AI chips from Tesla to his X Corp. and X.AI Corp. ventures.
--With assistance from Anne VanderMey.
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