Elon Musk confirms Tesla will let shareholders decide on xAI investment: Details here | Company Business News

Elon Musk has confirmed that Tesla plans to poll its shareholders on whether to invest in xAI. The billionaire’s comments come shortly after a Wall Street Journal report claimed that SpaceX was ready to invest $2 billion into xAI.

Writing on X, Musk suggested that the final decision on investing in xAI does not reside with him but with the shareholders. Last year, Musk had also polled X users on whether Tesla should invest $5 billion in xAI, noting at the time that he was just testing the waters.

“It’s not up to me. If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter,” Musk wrote in response to a post.

What is xAI?

xAI is the artificial intelligence lab set up by Elon Musk in early 2023 in response to the rising popularity of ChatGPT. Since then, the company has rolled out its Grok AI chatbot, which recently received an update to the Grok 4 models. The chatbot competes directly with the likes of ChatGPT, Gemini and Claude.

Earlier this year, Musk merged xAI and X in a deal that valued the AI startup at $80 billion and the social media company at $33 billion.

According to a Bloomberg report, Musk is seeking investments in the combined entity at a valuation of $200 billion. His desire for Tesla to invest in xAI appears to be part of his broader plan to more closely entwine his corporate empire.

Earlier this month, Musk revealed that Tesla would use Grok AI within its cars. The EV maker had also disclosed in April that xAI was one of its customers last year, with the startup spending $198.3 million on commercial consulting and support agreements with Tesla. Bloomberg reported that the bulk of that amount ($191 million) was spent on purchasing Tesla’s utility-scale energy storage batteries, known as Megapacks.