Elon Musk Polls Users on $5 Billion Tesla Investment in xAI

Tesla CEO Elon Musk recently initiated a poll on the social media platform X, asking users whether the electric vehicle giant should invest $5 billion in his artificial intelligence startup, xAI.

Musk described the poll as a way to “test the waters.” It is not a formal proposal and would require approval from Tesla’s board and shareholders if it were to proceed.

Elon Musk Poll Results and Public Reaction:

The poll garnered significant attention in the first few hours, with around 386,000 participants and 70% voting in favor of the proposed investment. This suggests strong public support for the move, although the decision ultimately rests with Tesla’s governance and investors.

Purpose and Potential Benefits

During Tesla’s earnings conference call, Musk explained that integrating xAI’s technologies could advance Tesla’s full self-driving capabilities and enhance the company’s new data center.

He also hinted at the potential for incorporating xAI’s chatbot, Grok, into Tesla’s software suite, which could open new avenues for innovation and customer engagement.

xAI and Its Backers:

Musk launched xAI last year to create an alternative to ChatGPT. In May, the startup successfully raised $6 billion in a Series B funding round, achieving a post-money valuation of $24 billion.

Notable investors include Andreessen Horowitz and Sequoia Capital. Musk has also indicated that investors in X, formerly known as Twitter, could own up to a quarter of xAI.

Concerns About Resource Allocation:

There have been concerns that Musk might be spreading his resources thin across his various ventures.

In June, it was reported that he directed Nvidia to send thousands of AI chips, initially meant for Tesla, to xAI and X due to a lack of space in Tesla’s data center.

However, Musk dismissed these concerns during the earnings call, asserting that the company’s focus and resources remain well-managed.