Elon Musk plans to consult Tesla shareholders about investing $5 billion in xAI, his new Grok AI development company, after pushing through a substantial compensation plan.
- Tesla might invest around $5 billion in xAI, the company developing Grok AI.
- This potential move was mentioned during the recent videoconference with shareholders and then put to a survey on X.
- However, Elon Musk needs to secure explicit approval from Tesla’s board of directors and shareholders.
To gauge his followers’ opinions, he posed the question on the social network X. Musk stated that the approval of the board and shareholders is crucial for making this decision. Currently, nearly 70% of his followers support the idea, with just under 10 hours remaining in the poll.
Elon Musk wants Tesla to invest $5 billion in xAI
Elon Musk states that xAI’s “capitalization” will be determined by reputable external investors. While companies led by Musk financing each other isn’t new, Tesla’s shareholder structure and its size, under regulatory scrutiny, add complexity to this move.
Additionally, Tesla’s latest quarterly results fell slightly below expectations for the fourth consecutive time, amid declining automotive sales. However, the energy storage segment’s sales are increasing, and future prospects like the introduction of robotaxis and Optimus robots provide shareholder reassurance.
Despite a 7% drop in Tesla’s stock value after the results announcement, Musk’s question about investing in Grok AI arises. This raises the issue of whether Tesla is keen on investing in the company developing Grok AI.
However, the entrepreneur has already partly answered this question in the past. In addition to his appeal to investors, he made a statement just a few hours before the X poll.
“Tesla is learning a lot from xAI. This has been very helpful in advancing fully autonomous driving and in building Tesla’s new data center. When it comes to investing in xAI, I think we would need shareholder approval for such an investment. But I am certainly in favour of it if the shareholders are.”
Elon Musk
The $5 billion figure wasn’t mentioned initially; it appeared later in the title of the entrepreneur’s survey on X.
