Elon Musk to hold Tesla investor vote on xAI investment, rules out merger

Core Viewpoint - Elon Musk has ruled out a merger between Tesla and xAI but plans to hold a shareholder vote on Tesla's investment in the AI startup, indicating a strategy to deepen integration across his business ventures [1][5]. Group 1: Investment and Financial Aspects - SpaceX, another company owned by Musk, is set to invest $2 billion in xAI as part of a larger $5 billion funding round to remain competitive in the AI sector [1]. - Analyst Gil Luria noted that while Tesla already has access to xAI's advanced models, investing in xAI could enhance Tesla's position if xAI becomes a leader in AI technology [4]. - xAI is projected to require tens of billions of dollars in investments to sustain its growth trajectory, and Tesla's board is expected to support capital allocation to xAI [7]. Group 2: Technology Integration - xAI's Grok chatbot is being integrated into Tesla vehicles, showcasing the close technological ties between the two companies [3]. - The acquisition of X (formerly Twitter) by xAI for $33 billion earlier this year is expected to facilitate the distribution of xAI products and provide valuable user data for development [6][10]. - xAI recently launched Grok 4, its latest AI model, which Musk claims is "the smartest AI in the world," although its usage still trails behind OpenAI's ChatGPT [9].