Tesla CEO Elon Musk announced plans to discuss a potential $5 billion investment in his artificial intelligence startup, xAI, with the company’s board. This proposal has sparked debate over possible conflicts of interest, given Musk’s leadership roles in both companies.
xAI, launched by Musk last year, aims to compete with established AI giants like Microsoft-backed OpenAI. The potential investment follows a recent poll Musk conducted on social media platform X, where over two-thirds of nearly one million respondents supported the idea.
Musk highlighted that xAI could advance Tesla’s self-driving technology and contribute to a new Tesla data center in Austin, Texas. Despite these potential benefits, critics argue that this investment might prioritize Musk’s personal ventures over Tesla’s shareholder interests.
The proposal comes amid challenging times for Tesla, which recently reported its second-quarter earnings below Wall Street expectations. Tesla’s focus on AI and robotics, including plans for autonomous robotaxis and humanoid robots, reflects its ambition to transform from a traditional automaker into a tech-driven enterprise.
As Tesla and xAI navigate these complex developments, stakeholders are watching closely to understand the implications for both companies and the broader tech landscape.
