Elon Musk indicated that he may consider merging his AI startup, xAI, with Tesla, provided that shareholders approve. In a recent interview, Musk stated that while there are no immediate plans for such a merger, he acknowledged its possibility. He also discussed xAI's acquisition of X (formerly Twitter) and current AI chip sourcing from Nvidia and AMD. Additionally, xAI is investing heavily in infrastructure, including deploying 200,000 GPUs and building a supercomputer in Memphis despite potential power grid challenges. Tesla's stock has experienced slight fluctuations as a result.
"Well, I guess anything is possible," Musk told CNBC show host David Faber in a two-part interview, when asked whether Musk would ever consider merging xAI into Tesla as a way to gain more control over the EV company.
Musk said in the Tuesday interview that Tesla and xAI will continue sourcing AI chips from Nvidia and AMD. He told Faber that xAI has deployed 200,000 GPUs at its Colossus facility in Memphis.
Based on documents previously viewed by Business Insider, xAI is also spending at least $400 million on building a supercomputer in Memphis, and may encounter difficulties because the city's power grid might not yet be capable of powering a project of that magnitude.
Following the CNBC appearance, Tesla shares saw a 0.5% boost at market closing time compared to the day before, but dipped slightly in after-hours trading.
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