Elon Musk To Seek $5bn Investment Approval in AI start-up

The CEO of Tesla Inc., Elon Musk, has announced plans to seek board approval for a $5bn investment in xAI, his artificial intelligence start-up.

He made this revelation via a poll posted on his social media platform X.

Recall that in May,  xAI raised $6bn in a Series B funding round backed by investors including Valor Equity Partners, Andreessen Horowitz, and Sequoia Capital, among others.

Musk asked users if Tesla should invest $5bn in xAI, pending valuation verification by outside investors.

He said that the poll which was informal would require a formal board approval and shareholder vote.

If approved, the investment will further integrate Musk’s network of technology companies, including SpaceX, Neuralink, The Boring Company, Tesla, and xAI.

“Should Tesla invest $5B into xAI, assuming the valuation is set by several credible outside investors?

“Board approval and shareholders vote are needed, so this is just to test the waters.

“xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced,” the startup said.

Musk’s company primarily focuses on developing advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity.