KEYTAKEAWAYS
- Musk launches poll on X about Tesla investing $5 billion in xAI
- Over 70% of 322,000+ participants vote in favor of the investment
CONTENT
Tesla CEO seeks public opinion on potential multi-billion dollar investment in his AI startup, with over 70% of respondents supporting the move. The poll, aimed at “testing the waters,” precedes necessary board and shareholder approvals.
Elon Musk, the billionaire entrepreneur and CEO of Tesla, took to social media platform X (formerly Twitter) on Tuesday to gauge public sentiment on a potential $5 billion investment by Tesla in his artificial intelligence startup, xAI.
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The poll, which Musk described as a way to “test the waters” for a possible deal, has garnered significant attention. As of 0234 GMT, more than 322,000 users had participated, with 70.2% voting in favor of the investment. The poll is set to remain open for a day.
Should Tesla invest $5B into @xAI, assuming the valuation is set by several credible outside investors?
(Board approval & shareholder vote are needed, so this is just to test the waters)
— Elon Musk (@elonmusk) July 24, 2024
Musk emphasized that both board approval and shareholder votes would be necessary for any such investment to proceed. Tesla has not yet responded to requests for comment, and xAI could not be reached.
This move comes at a crucial time for Tesla, which recently reported its lowest profit margin in over five years. The electric vehicle manufacturer has been cutting prices to stimulate demand and increasing spending on AI projects. Tesla stated that it expects its hardware-related profit to be complemented by accelerated growth in AI, software, and fleet-based profits.
Musk founded xAI in 2023 as a competitor to industry leaders like Microsoft-backed OpenAI and Alphabet’s Google in the rapidly evolving field of generative AI. The startup has already made significant strides, raising $6 billion in Series B funding in May, backed by prominent investors including Andreessen Horowitz and Sequoia Capital. xAI’s current valuation stands at an impressive $24 billion.
The potential investment aligns with Tesla’s broader AI strategy. Musk recently disclosed that Tesla plans to spend between $3 billion and $4 billion on Nvidia’s hardware this year, as part of a larger $10 billion AI-related capital expenditure plan for 2024.
As the poll continues to attract votes, the tech and finance worlds are closely watching to see how this potential investment could reshape the AI landscape and Tesla’s future direction.
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