Elon Musk says Tesla shareholders will vote on investing in xAI

Elon Musk, CEO of Tesla, has announced that the electric vehicle manufacturer will seek approval from its shareholders regarding a potential investment in his artificial intelligence venture, xAI. This revelation followed a conversation on social media platform X, where a user expressed concerns about the fairness of Tesla not investing in xAI for retail investors. In his response, Musk indicated, "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," though he did not provide a specific date for the vote. This development comes just after Musk confirmed that SpaceX is planning to invest $2 billion into xAI. He mentioned the investment in a post on X, noting that it would require board and shareholder approval. This isn't the first instance of xAI leveraging its connection to Musk's extensive business network for investment opportunities. Earlier reports suggested that xAI had previously pitched its ties to Musk's various companies to attract funding, often referred to as the "Muskonomy." In addition to Tesla and SpaceX, Musk also leads The Boring Company and Neuralink. He has publicly committed to prioritizing shareholders of his various enterprises, including Tesla, should any of his businesses consider going public. "Loyalty deserves loyalty," Musk stated in a prior post. Founded in July 2023, xAI has quickly made a name for itself in the tech industry, raising over $12 billion in its Series A, B, and C funding rounds last year, with a valuation reaching approximately $50 billion. In March, Musk revealed that xAI had acquired X in a deal valued at $80 billion, further solidifying its position in the market. Recent reports from Morgan Stanley indicate that xAI raised an additional $10 billion, underscoring the high demand for investment in the company's future projects, including its data centers and the Grok chatbot.