Tesla shareholders will vote on potential xAI investment, says Elon Musk: ‘If it was up to me, Tesla would have….'
For those unaware, xAI is an artificial intelligence company started by Elon Musk in early 2023, after OpenAI's ChatGPT became popular. Since then, the company has created its own AI chatbot called Grok – a direct competitor to other chatbots like ChatGPT, Gemini, and Claude. The AI bot was recently updated to a new version called Grok 4.
Earlier this year, Musk merged xAI with his social media company X in a deal that valued xAI at $80 billion.
A recent Wall Street Journal report said that Musk's space company SpaceX is planning to invest $2 billion into xAI as part of its $5 billion capital raise. Responding to an X user who cited the WSJ's report, the tech billionaire said that "it would be great" but would depend on "board and shareholder approval."
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Musk has previously floated the potential synergies between the AI start-up, xAI and his two major companies, SpaceX and Tesla. As per a Financial Times report, the tech mogul is seeking a valuation between $170 and $200 billion for xAI in a new funding round.
The AI startup has invested heavily in a gigantic data center in Memphis, Tennessee, Musk claims that the startup will be the "most powerful AI training system in the world." The company has reportedly purchased another plot of land nearby to create more data centers.
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