Austin: Tesla CEO Elon Musk has announced plans to discuss a potential $5 billion investment in his artificial intelligence startup, xAI, with Tesla’s board. Musk founded xAI last year as a competitor to Microsoft-backed OpenAI, raising concerns about the possible redirection of Tesla’s resources to the AI venture.
On Tuesday, Musk conducted a poll on the social media platform X, asking users if Tesla should invest $5 billion in xAI. The poll garnered nearly one million responses, with over two-thirds supporting the investment. However, it remains unclear how many of the respondents are Tesla investors.
This development comes on the heels of Tesla’s announcement that its second-quarter automotive gross margin and profit fell below Wall Street expectations due to price cuts and sales incentives. Despite the financial challenges, Musk noted the public's support for the investment in xAI and stated he would bring the matter to Tesla’s board for discussion.
During Tesla’s earnings call on Tuesday, Musk highlighted the potential benefits of xAI for Tesla, suggesting that the AI startup could enhance Tesla’s self-driving technology and contribute to the development of a new Tesla data center. Additionally, there are plans to integrate xAI’s chatbot, Grok, into Tesla’s software.
This proposed investment signifies Musk’s continued commitment to advancing artificial intelligence and its integration into Tesla’s future technologies.
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