Tesla CEO Elon Musk has launched a poll on the social media platform X, asking users whether the electric carmaker should invest $5 billion in his AI startup, xAI. Preliminary results indicate strong support for the investment. Musk clarified that the poll aims to gauge public opinion, but formal approval from Tesla’s board and shareholders is required. This development follows Tesla’s announcement of its lowest profit margin in five years, attributed to price cuts and increased spending on AI projects.
During Tesla’s earnings call, Musk highlighted how xAI could enhance Tesla’s full self-driving capabilities and help establish a new Tesla data centre. He also mentioned the potential integration of xAI’s chatbot, Grok, with Tesla’s software.
Approximately four hours after the poll was posted, around 440,189 participants had responded, with 69.5% in favour of the investment and 30.5% against it.
Founded by Musk last year, xAI aims to develop an alternative to ChatGPT. The startup secured $6 billion in series B funding in May, achieving a post-money valuation of $24 billion, with major investors including Andreessen Horowitz and Sequoia Capital. Musk has stated that a quarter of xAI will be owned by investors in X, the platform formerly known as Twitter, which Musk acquired for $44 billion.
During the earnings call, Musk downplayed concerns about Tesla’s resources being diverted to his other ventures. In June, CNBC reported that Musk instructed Nvidia to ship thousands of AI chips meant for Tesla to xAI and X due to space constraints in Tesla’s data centre.
Musk is known for using X polls to make decisions. In 2021, he used a poll to ask users whether he should sell 10% of his Tesla shares, and he subsequently sold shares based on the poll’s results.
While the poll indicates public interest, the final decision rests with Tesla’s shareholders and board members, who must evaluate the potential benefits and risks of such a significant investment.
