Tesla CEO Elon Musk announced on Thursday that he plans to discuss a $5 billion investment in the artificial intelligence startup xAI. This move comes as Tesla aims to accelerate the development of its robotaxi and self-driving technologies.
Tesla’s ambitious self-driving project has encountered numerous technical and legal challenges in recent years. To overcome these, the company is strengthening its AI infrastructure to better train models for its autonomous technology. “Looks like the public is in favor. Will discuss with Tesla board,” Musk posted on X, after a poll on the social media platform showed nearly 68% of respondents supported the investment in xAI.
Earlier this week, during Tesla’s earnings conference call, Musk mentioned that xAI could significantly advance full self-driving capabilities and aid in building Tesla’s new data center. He also noted potential opportunities to integrate Grok with Tesla’s software.
On Tuesday, Tesla reported that its second-quarter automotive gross margin and profit fell short of Wall Street estimates due to price cuts and sales incentives.
Musk, the world’s richest person, launched xAI last year to compete with OpenAI, backed by Microsoft, and Alphabet’s Google. The startup raised $6 billion in a series B funding round in May, achieving a post-money valuation of $24 billion. Its investors include Andreessen Horowitz and Sequoia Capital.
