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Musk to discuss $5 billion xAI investment with Tesla board
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Musk to discuss $5 billion xAI investment with Tesla board
Jul 25, 2024 8:28 AM

July 25 (Reuters) - Tesla CEO Elon Musk said on Thursday

he will discuss a $5 billion investment in artificial

intelligence startup xAI, as the electric-vehicle maker looks to

double down on efforts to expedite the development of its

robotaxi and self-driving products.

The ambitious self-driving project has faced numerous

technical and legal hurdles in recent years, and the automaker

is now bolstering its AI infrastructure to train models for

Tesla's autonomous technology.

"Looks like the public is in favor. Will discuss with Tesla

board," Musk said in a post on X after a poll on the social

media platform showed nearly 68% of respondents said the company

should invest in xAI, the Grok chatbot developer.

Earlier this week, during Tesla's earnings conference call,

Musk said xAI would be "helpful in advancing full self-driving

and in building up the new Tesla data center," adding that there

are opportunities to integrate Grok with Tesla's software.

Tesla's second-quarter automotive gross margin and profit

fell short of Wall Street estimates on Tuesday as the company

cut prices and offered incentives to boost sales.

Musk, the world's richest person, launched xAI last year, in

a bid to compete with ChatGPT maker OpenAI, its backer Microsoft

and Alphabet's Google.

The startup raised $6 billion in a series B funding in May,

fetching a post-money valuation of $24 billion. Its investors

include Andreessen Horowitz and Sequoia Capital.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini

Ganguli)

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