Is Tesla willing to invest in Elon Musk’s xAI? Here’s what we know so far

Tesla says it will “examine” whether to invest in Elon Musk’s artificial intelligence (AI) startup xAI, after shareholders delivered a mixed but generally positive signal during Thursday’s annual meeting.

The annual meeting was held in Austin, Texas, where Musk secured approval for his record-breaking $1 trillion pay package.

During the meeting, Tesla’s General Counsel Brandon Ehrhart announced that more shareholders voted for the proposal to invest in xAI than against it, although a significant portion chose to abstain.

“Since this is an advisory vote, the board will examine the next steps in light of this level of shareholder support,” Ehrhart told attendees.

However, Musk has been far more direct on X (formerly Twitter), previously stating that if he alone controlled the decision, “Tesla would have invested in xAI long ago.”

For those unversed, founded in July 2023, xAI has quickly climbed to a $50 billion valuation, raising over $12 billion while developing its headline product: Grok, the chatbot integrated into Musk’s social platform X.

This is not the first time one of Musk’s companies is investing in the another. In March, he announced xAI had acquired X in an all-stock deal, and SpaceX later revealed plans to invest $2 billion into the AI startup.