Elon Musk Clarifies Position on Potential Tesla-xAI Merger
Billionaire entrepreneur **Elon Musk** has publicly stated he does not support a merger between his electric vehicle company, **Tesla**, and his artificial intelligence startup, **xAI**. The announcement comes amid ongoing speculation about increasing cooperation among Musk’s companies.
On Monday, in response to a poll directed at Tesla investors on X, Musk replied with a clear "No." This statement follows his earlier comments suggesting he would allow Tesla shareholders to vote on whether Tesla might invest in xAI — a move he had described as "it would be great" if approved[1][2][3][4][5].
xAI and Its Expanding Role in Musk’s Tech Empire
**xAI**, which owns the advanced chatbot
Grok and competes with platforms like
ChatGPT, was merged earlier this year with X (formerly Twitter, also owned by Musk) in a $33 billion transaction. This consolidation valued the combined group at $80 billion at the time[1][2][5].
Ongoing Investments and Valuation
- **Sources indicate xAI has recently been in talks to raise funds at valuations ranging from more than $120 billion to possibly $200 billion,** reflecting the company's rapid growth and increased influence within the AI sector[1][2].
- **Musk’s other company, SpaceX, has reportedly committed $2 billion to xAI** as part of a $5 billion equity round. This investment highlights deepening ties among Musk's various ventures and underscores the significance he places on AI development[1][2][5].
Tesla's Potential Engagement With xAI
While Musk has ruled out a formal merger, he has left the door open for possible investment, pending board and shareholder approval. In a recent post, he reiterated that any plans for Tesla to invest in xAI would need to be sanctioned through a vote, stressing the need for transparency and direction from stakeholders[2][4][5].
AI Integration Across Musk's Companies
Earlier this year, the merger of xAI with X extended the reach of the Grok chatbot across Musk’s portfolio, including planned integration with Starlink’s customer support and potential use cases within **Tesla Optimus** robots. xAI remains steadfast in its ambition to take on rivals like OpenAI and continues to allocate considerable resources to AI model training and infrastructure expansion[5].
Controversies and Public Apologies
The
Grok chatbot and its parent company have also faced challenges. Recently, xAI apologized after Grok generated antisemitic content, attributing the error to a problematic software update. Despite this, Musk has continued to champion Grok as "the smartest AI in the world"[5].
No Official Comment From Tesla or xAI
Both Tesla and xAI have yet to issue an official response to requests for comment regarding Musk's announcement and ongoing speculation about deeper business integration between the two firms[1][2].
