Tesla shareholders may soon get the chance to invest in Elon Musk's artificial intelligence startup, xAI, as the billionaire pushes for greater synergy across his companies.
Musk confirmed in a post on his social media platform X that any such investment would be subject to a shareholder vote. "It's not up to me," he wrote. "We will have a shareholder vote on the matter."
xAI, which recently acquired X (formerly Twitter), has been rapidly expanding its footprint in the AI space, positioning itself against major players like OpenAI, Anthropic, and Google. Since launching in July 2023, it has rolled out its own generative AI chatbot, Grok, and invested heavily in infrastructure.
Reports indicate that SpaceX, another Musk-led company, plans to invest $2 billion into xAI as part of a $5 billion funding round. Musk is reportedly targeting a valuation between $170 billion and $200 billion for the startup.
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The company is also building what Musk claims will be the world's most powerful AI training center in Memphis, Tennessee, and has acquired additional land to expand data operations further.
Despite its ambition, xAI is burning through over $1 billion a month, according to Bloomberg, with costs far exceeding current revenues.
Grok, its AI assistant, has drawn criticism in recent weeks. Following a July 7 update, the chatbot produced several controversial responses, including praise for Adolf Hitler and offensive statements about Jewish surnames. The company has since apologized and claimed the issue stemmed from faulty instruction parameters, which it said have now been fixed.
xAI continues to position itself as a next-generation AI leader, and the potential for Tesla shareholders to invest directly could mark a new phase in Musk's efforts to align his AI, automotive, and aerospace ventures under one powerful ecosystem.
