Tesla CEO Elon Musk introduced a vote asking whether Tesla would invest $5 billion in its artificial intelligence company, xAI, and early feedback favored the proposal.
Musk, the ballot, an experiment
Musk called the vote an experiment, saying, “It requires board approval and a shareholder vote, so it’s just testing the waters. ” The survey tracks Tesla’s lowest profit margin in five years, driven by value cuts and increased spending on AI initiatives.
xAI’s role in Tesla’s future, as discussed via Musk
During Tesla’s earnings call, Musk discussed that xAI would be “useful for advancing fully autonomous driving and the construction of Tesla’s new knowledge center,” and also discussed that xAI’s chatbot, Grok, had to be combined with Tesla’s technology.
Around 386,000 people participated in the survey, 70% of whom were in favor of investing, just 3 hours after its publication.
No one from Tesla or xAI was available for comment when Reuters approached for comment.
Year of Release, xAI Aims to Rival ChatGPT
Last year, Musk, the world’s richest man, introduced xAI with the aim of creating a replacement for ChatGPT. The company reached a post-cash valuation of $24 billion after raising $6 billion in May’s Series B fundraising round. Sponsors come with Sequoia Capital and Andreessen Horowitz.
According to Investing. com, while the social media company’s price has plummeted since Musk bought it for $44 billion, he has said in the future that he intends for investors in X, formerly known as Twitter, to get 25% of xAI.
Musk also downplayed suspicions that he was diverting investments from Tesla to his other profit-making corporations.
According to CNBC, it asked Nvidia to ship thousands of AI chips intended for Tesla to xAI and X in June. Musk stated that Tesla’s data is at capacity and may no longer support chips.
In X, Musk is a normal voter. Just days after polling his Twitter followers about whether he would sell his 10% stake in Tesla in 2021, he began selling shares.
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