Tesla CEO Elon Musk announced on Thursday his intention to discuss a significant $5 billion investment in the artificial intelligence startup xAI. This move aligns with Tesla's strategy to accelerate the development of its robotaxi and self-driving products, which have encountered various technical and legal challenges over the years.
Musk revealed the potential investment following a poll on the social media platform X, where nearly 68% of respondents expressed support for Tesla investing in xAI, the developer of the Grok chatbot. "Looks like the public is in favor. Will discuss with Tesla board," Musk posted on X.
Earlier this week, during Tesla's earnings conference call, Musk highlighted the strategic benefits of xAI for Tesla. He noted that xAI could play a crucial role in advancing Tesla's full self-driving technology and in establishing a new Tesla data center. Additionally, there are plans to integrate xAI's Grok chatbot with Tesla's software systems.
This announcement comes amid Tesla's efforts to bolster its AI infrastructure to improve the training of models for its autonomous technology. Despite recent setbacks, including a drop in second-quarter automotive gross margin and profit, Tesla remains committed to advancing its self-driving ambitions.
Musk, who is also the world's richest person, launched xAI last year to compete with leading AI companies like OpenAI, backed by Microsoft, and Alphabet's Google. In May, xAI raised $6 billion in a series B funding round, achieving a post-money valuation of $24 billion. The startup's investors include prominent venture capital firms Andreessen Horowitz and Sequoia Capital.
As Tesla continues to push the boundaries of AI and autonomous driving, this potential investment in xAI underscores the company's commitment to leveraging cutting-edge technology to overcome existing challenges and pave the way for future innovations.
