Tesla Shareholders To Vote Whether To Invest On xAI, Says Elon Musk | Economy News
New Delhi: Tesla CEO Elon Musk has said that a shareholder vote will be held to decide whether the automaker should invest in his artificial intelligence startup xAI. His comments followed a Wall Street Journal report that Musk’s rocket company SpaceX will invest $2 billion in xAI.
Tesla shareholders vote on xAI investment
Writing on his social media platform X, Musk said that there would be a vote among Tesla shareholders to decide whether the automaker can invest in xAI.
“If it was up to me, Tesla would have invested in xAI long ago,” the billionaire owner of both companies Musk, said. “We will have a shareholder vote on the matter,” the world’s richest man said.
What is xAI?
xAI is the artificial intelligence company founded by Elon Musk in 2023. The company has since launched its Grok AI chatbot, which recently received an update to the Grok 4 models. xAI competes directly with ChatGPT, Gemini and Claude.
xAI acquires X
xAI acquired Musk’s X in a $33 billion deal earlier this year. This acquisition valued the combined group at $80 billion at the time.
Musk shared the news on X, saying, “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk added.
SpaceX to invest $2 billion into xAI
The Wall Street Journal has reported that Elon Musk’s SpaceX will invest $2 billion into xAI as part of its $5 billion capital raise.
Responding to an X user who cited the WSJ’s report, Musk said that “it would be great” but would depend on “board and shareholder approval.”
