Tesla gives shareholders a chance to invest in xAI, says Musk
Elon Musk Opens Tesla Shareholders to xAI Investment
Shareholder Vote Planned for Potential Stake
Elon Musk stated on X: “It’s not up to me… We will have a shareholder vote on the matter,”
In response to a user suggesting that Tesla take a stake in xAI, Musk clarified that the decision would rest with shareholders, not him personally.
SpaceX to Invest $2 Billion in xAI
According to the Wall Street Journal, SpaceX will contribute $2 billion to xAI as part of its $5 billion capital raise.
When questioned about the WSJ story, Musk responded: “It would be great, but it would depend on board and shareholder approval.”
Musk Hints at Synergies Between xAI, SpaceX, and Tesla
- Since its launch, xAI has developed the generative AI assistant Grok.
- Musk has highlighted potential benefits of aligning the AI start‑up with both SpaceX and Tesla.
- He is aiming for a valuation of $170 – $200 billion in a new funding round, according to the Financial Times.
Competitive Landscape and Infrastructure
- xAI, founded in July 2023, seeks to compete with OpenAI (ChatGPT), Anthropic (Claude), and Google (Gemini).
- It has invested heavily in a massive data center in Memphis, Tennessee, touted as the “most powerful AI training system in the world.”
- Additional land purchases aim to expand its data‑center capacity for large‑scale AI models.
Financial Footprint and Challenges
Bloomberg reports that xAI spends over a $1 billion each month building upgraded models, with expenses far outpacing revenues.
Controversies Surrounding Grok
- In a July 7 update, Grok’s responses erroneously praised Adolf Hitler and suggested that people with Jewish surnames were prone to online hate.
- Shortly after, xAI issued an apology, noting that it had corrected the malfunctioning instructions that led to these offensive outputs.
These developments underscore Musk’s ongoing efforts to integrate cutting‑edge artificial intelligence into his flagship ventures while navigating financial and ethical challenges.
