"Tesla disclosed in a letter to shareholders on Wednesday that it invested $2 billion in xAI, the startup behind the Grok chatbot that also owns Musk's social media company X. Other previously disclosed investors in xAI include Valor Equity Partners, Fidelity, Qatar Investment Authority as well as Nvidia and Cisco as "strategic investors." This is a truly circular deal and one that Tesla shareholders voted against last year."
"In November, shareholders were asked in a non-binding measure to allow the Tesla board to authorize an investment in xAI. About 1.06 billion votes were in favor, and 916.3 million opposed, per Bloomberg's reporting at the time. While that would seem like an approval, the number of abstentions - which count as votes against in Tesla's bylaws - meant the measure was rejected."
""As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok)," the shareholder letter reads. "In that context, and as part of Tesla's broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment.""
Tesla disclosed it invested $2 billion in xAI, the company behind the Grok chatbot and owner of X. Other investors in xAI include Valor Equity Partners, Fidelity, Qatar Investment Authority, Nvidia, and Cisco as strategic investors. A non-binding shareholder measure to authorize the investment was rejected because abstentions count as votes against under Tesla bylaws, even though votes in favor outnumbered votes opposed. Tesla justified the investment by citing alignment with Master Plan Part IV and the integration of digital AI with physical AI and robotics efforts, including Optimus, semitrucks, and autonomous capabilities. Tesla beat revenue estimates but saw profit fall 46% last year.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]