Musk Asks X Followers If Tesla Should Sink $5 Billion Into xAI

(Bloomberg) — Elon Musk is asking his X followers whether Tesla Inc. should invest $5 billion into his artificial intelligence startup, saying he was “testing the waters” for a potential deal.

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The billionaire posted the question shortly after Tesla reported a fourth straight quarter of disappointing profit. During the earnings call, Musk was asked about the possibility of the electric-car maker investing in xAI or integrating the Grok chat bot into Tesla software.

“Tesla is learning quite a bit from xAI,” Musk said. “It’s been actually helpful in advancing Full Self-Driving and in building up the new Tesla data center.”

Musk then said he was supportive of the idea of Tesla investing in xAI if there was shareholder approval. He posted his poll on the matter late Tuesday.

Musk’s xAI, founded in 2023, raised some $6 billion in a funding round this year that valued the startup at around $18 billion before the deal. Sequoia Capital and Andreessen Horowitz were among the backers in one of the biggest investments so far in generative AI.

On X, Musk stipulated that the valuation of any future deal would have to be set by “credible” outside investors.

Musk, who oversees six companies, has come under fire for conflicting interests. In June, the billionaire confirmed he diverted scarce AI chips from Tesla to his X Corp. and X.AI Corp. ventures.

–With assistance from Anne VanderMey.