Tesla to invest $2 billion in xAI, Elon Musk’s OpenAI competitor
Tesla’s $2 billion investment in xAI supports its Master Plan Part IV to integrate digital AI with robotics and autonomous vehicles, enhancing AI collaboration, Tesla said.
- On Wednesday, Tesla disclosed it had agreed to invest $2 billion in xAI and entered a framework agreement to evaluate AI collaborations, with the deal expected to close in Q1'2026.
- The share purchase tied to xAI's $20 billion Series E announced earlier this month, which valued the company at approximately $230 billion, and Tesla justified the move by citing Master Plan Part IV.
- Grok, xAI's large language model and chatbot/image generator, has faced probes from the European Commission and California Department of Justice, with Malaysia and Indonesia suspending Grok after a recent release enabled deepfake images.
- Despite a failed non-binding November measure, the Tesla board approved the investment while Tesla shareholders sue Elon Musk for breach of fiduciary duty and seek court action to transfer his xAI ownership.
- Tesla said the deal is intended to help deploy AI into the physical world at scale, highlighting Optimus, Tesla semitrucks, and other autonomous projects with investors including Nvidia and Qatar Investment Authority.
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Tesla invests $2 billion in Musk's xAI and reiterates Cybercab production starts this year
Tesla TSLA.O said on Wednesday it will invest $2 billion in CEO Elon Musk's artificial intelligence company xAI - and that production plans for its Cybercab robotaxi and Semi trucks were on track for this year.
According to the company, roads without motorist Semi are also within the timetable of this year
Elon Musk invests $2 billion in Elon Musk.
In its earnings report today, Tesla disclosed a $2 billion investment in xAI “as part of their recent publicly-disclosed financing round.” Bloomberg reported earlier this year that xAI, which also owns X.com and the Grok AI chatbot, burned about $7.8 billion in the first nine months of 2025. Tesla claims that the investment in xAI is “intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at sc…
Tesla announces massive investment into xAI
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16. The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday. The investment follows shar…
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