Asger Risom
Despite mounting speculation and his own suggestion of collaboration, Elon Musk has shut down the idea of merging Tesla with his AI venture xAI.
Despite mounting speculation and his own suggestion of collaboration, Elon Musk has shut down the idea of merging Tesla with his AI venture xAI.
Musk Says “No” to Merger Talks
Elon Musk responded directly to a user on X, firmly denying support for a merger between Tesla and xAI, his artificial intelligence startup that owns Grok.
A Weekend of Mixed Signals
Just a day before, Musk had publicly entertained the idea of Tesla investing in xAI and even suggested a shareholder vote, creating confusion over his stance.
xAI’s Rapid Rise
xAI, which now owns X (formerly Twitter), was acquired earlier this year in a $33 billion deal and is already valued at up to $200 billion in funding discussions.
Grok: A Challenger to ChatGPT
Musk launched Grok as xAI’s flagship chatbot, positioning it as a competitor to OpenAI’s ChatGPT and other major AI systems.
Ties to Tesla Remain Tenuous
While some investors see synergies between Tesla and xAI, especially in AI and robotics, Musk appears to prefer keeping their operations separate—for now.
SpaceX Invests in AI
According to The Wall Street Journal, SpaceX has committed $2 billion to xAI, contributing to a planned $5 billion equity round and underscoring Musk’s AI ambitions.
Investor Curiosity and Concern
The idea of Tesla investing in xAI raised concerns among shareholders about dilution and governance, especially given Musk’s overlapping leadership roles.
No Comment from the Companies
Tesla and xAI have yet to issue official statements clarifying their long-term relationship, leaving investors to speculate on what Musk’s next move might be.
