Elon Musk: Tesla shareholders will vote on the investment in xAI
Tesla CEO Elon Musk announced that Tesla shareholders will vote on whether to invest in xAI. Previously, SpaceX planned to invest $2 billion in xAI. Musk stated that the final decision requires approval from the board and shareholders. After merging with social media company X, xAI was valued at $80 billion, with financing negotiations valuing it as high as $200 billion. The partnership between Tesla and xAI will deepen further, as electric vehicle sales decline and investors call for strengthened collaboration. xAI incurred $198.3 million in expenses last year due to its agreement with Tesla
According to Zhitong Finance APP, Tesla (TSLA.US) CEO Elon Musk stated that Tesla plans to seek shareholder opinions on whether to invest in xAI. Previously, it was reported that SpaceX is preparing to invest $2 billion in the developer of the Grok chatbot software. Musk responded to a post on the X platform, stating that the final decision on whether to support this startup is not up to him. Last year, Musk publicly asked users on the X platform whether Tesla should invest $5 billion in xAI, indicating that it was just a way to gauge market reaction. However, he also stated that such a decision would require approval from Tesla's board of directors and shareholders.
Musk founded xAI in early 2023, just months after OpenAI sparked an AI boom with the launch of ChatGPT. Subsequently, xAI merged with the social media service X, with Musk claiming that this merger valued the AI startup at $80 billion, while the social media company was valued at $33 billion.
Reports indicate that as the merged entity xAI Holdings begins financing negotiations, it is valued at up to $200 billion, presenting potential investment opportunities. Musk is attempting to integrate the various departments of his companies more closely.
This month, Musk revealed that Tesla will adopt Grok robot technology in its vehicles—just days after the robot made anti-Semitic remarks on Twitter. This integration indicates that the cooperative relationship between the two companies will deepen further, as some Tesla investors have previously called for strengthening this partnership due to a significant decline in electric vehicle sales.
In April, Tesla disclosed that xAI was a client from the previous year, with the startup incurring $198.3 million in fees due to a commercial, consulting, and support agreement with the automaker. Most of this business ($191 million) involved xAI purchasing Tesla's large energy storage batteries, known as "Megapack."
