Elon Musk to Propose $5 Billion xAI Investment to Tesla Board
Tesla launches a new tab Concerns about a conflict of interest were stoked when Elon Musk, the CEO of the electric vehicle firm, announced on Thursday that he and the board would talk about investing $5 billion in his artificial intelligence venture, xAI.
The world’s richest man, Elon Musk, introduced xAI last year to take on OpenAI, which is supported by Microsoft. That raised questions about whether he would give the automaker’s resources to the AI startup.
Musk stated that xAI will be “helpful in advancing full self-driving and in building up the new Tesla data center” earlier this week during Tesla’s earnings conference call. He also mentioned that there are chances to integrate Grok with Tesla’s software.
Tuesday’s Tesla car earnings and gross margin for the second quarter fell short of Wall Street projections despite the company’s price reductions and sales incentives.
The richest man in the world, Elon Musk, introduced xAI last year to take on ChatGPT creator OpenAI, Microsoft, and Alphabet’s Google.
In May, the business secured $6 billion in series B fundraising, resulting in a $24 billion post-money valuation. Sequoia Capital and Andreessen Horowitz are among its investors.
