Musk launches poll asking if Tesla should invest $5 bln in xAI, early votes in favour
Tesla CEO Elon Musk has initiated a poll on the social media platform X to gauge public opinion on whether the electric vehicle manufacturer should invest $5 billion in his artificial intelligence startup, xAI.
Early responses show strong support, with 70% of approximately 386,000 participants in favor. Musk clarified that board and shareholder approval would be necessary before proceeding.
This poll follows Tesla’s recent earnings report, which revealed its lowest profit margin in five years, attributed to price cuts and increased AI project expenditures.
Musk highlighted the potential benefits of xAI in advancing Tesla’s self-driving technology and enhancing the company’s data center capabilities. He also mentioned the possibility of integrating xAI’s chatbot, Grok, with Tesla’s software.
Musk launched xAI last year as an alternative to ChatGPT, securing $6 billion in Series B funding in May and achieving a post-money valuation of $24 billion.
Notable backers include Andreessen Horowitz and Sequoia Capital. Musk has plans for a quarter of xAI to be owned by investors in X, the social media platform formerly known as Twitter, which he acquired for $44 billion.
On the earnings call, Musk addressed concerns about potentially diverting resources from Tesla to his other ventures, citing logistical issues at Tesla’s data center as the reason for redirecting AI chips to xAI and X.
Musk has a history of using social media polls to make significant business decisions, including a 2021 poll where he asked Twitter users if he should sell 10% of his Tesla shares, subsequently following through based on the poll results.