Elon Musk plans $5bn investment in AI startup xAl,
Technology,
The CEO of Tesla Inc., Elon Musk, has announced plans to seek board approval for a $5bn investment in xAI, his artificial intelligence startup.
In a poll posted on his social media platform X on Thursday, Musk asked users if Tesla should invest $5bn in xAI, pending valuation verification by outside investors.
The billionaire businessman emphasised that the poll was informal and that a formal board approval and shareholder vote would be required.
If approved, the investment would further integrate Musk’s network of technology companies, including SpaceX, Neuralink, The Boring Company, Tesla, and xAI.
“Should Tesla invest $5B into xAI, assuming the valuation is set by several credible outside investors
“(Board approval and shareholder vote are needed, so this is just to test the waters,” Musk tweeted.
In May, The PUNCH reported that xAI raised $6bn in a Series B funding round backed by investors including Valor Equity Partners, Andreessen Horowitz, and Sequoia Capital, among others.
“xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced,” the startup said.
Musk’s company primarily focuses on developing advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity.
Last year, the businessman launched xAI, as he seeks to compete with OpenAI, the creator of ChatGPT—a program he accused of being politically biased and irresponsible.
