Tesla Shareholders to Vote on xAI Investment

Tesla CEO Elon Musk plans to ask shareholders to vote on investing in xAI, a company he founded to develop the Chatbot Grok. The decision will ultimately not be his, but rather that of the board and shareholders. This comes after SpaceX agreed to invest $2 billion in xAI. Musk previously polled X users on whether Tesla should invest $5 billion in xAI. Tesla will integrate Grok into its vehicles, a move that could expand the company's relationship with xAI.

Tesla CEO Elon Musk has announced that the company will give shareholders the option to invest in xAI, an artificial intelligence startup founded by Musk. The decision will ultimately be made by the board and shareholders, as Musk has stated that "it's not up to me" [1].

SpaceX, another company controlled by Musk, has already invested $2 billion in xAI as part of its $5 billion capital raise. This investment aims to integrate AI deeper into Musk's ecosystem, with plans for Grok, xAI's chatbot, to power Starlink customer support and integrate with Tesla's Optimus robots [2].

Musk has previously floated the potential synergies between xAI and his other companies, SpaceX and Tesla. The AI startup has invested heavily in a gigantic data center in Memphis, Tennessee, which Musk claims will become the "most powerful AI training system in the world" [1]. The startup has also faced controversies, such as Grok's offensive posts, which the company has since apologized for and corrected [1].

The $2 billion investment from SpaceX marks one of the company's largest external investments and nearly half of xAI's recent $5 billion equity raise. This deal creates unprecedented synergies across Musk's companies, including AI for mission planning and satellite optimization, Grok integration into vehicles, and resource sharing and efficiency [3].

The investment also signals SpaceX's transformation from a launch provider to an AI-powered space technology company. The company aims to use AI for network management, autonomous landing and navigation, and Mars mission planning [3].

The decision to invest in xAI will be a critical one for Tesla shareholders, as it could significantly impact the company's financial and technological future. The vote is expected to be held soon, with Musk stating that "it would be great" but would depend on "board and shareholder approval" [1].

References:
[1] https://finance.yahoo.com/news/tesla-offer-shareholders-chance-invest-022804773.html
[2] https://timesofindia.indiatimes.com/science/elon-musks-spacex-invests-2-billion-in-xai-to-expand-ai-empire-with-grok-and-x-integration-raising-valuation-to-113-billion-report/articleshow/122416561.cms
[3] https://techcrunch.com/2025/07/13/elon-musks-spacex-might-invest-2-billion-in-musks-xai/