"Tesla Inc. shareholders will vote in November to decide if the electric carmaker should invest in Elon Musk's closely held artificial intelligence startup, xAI. The planned vote, which was part of a shareholder proposal disclosed Friday in Tesla's annual proxy statement, could further entwine Musk's business empire. XAI, which Musk started in early 2023, already merged with his social networking company X in March."
"XAI has raised billions of dollars in funding already this year, and is spending aggressively on data centers and specialized computer chips in an effort to catch up to rivals like OpenAI and Alphabet Inc.'s Google. As of July, xAI was burning through $1 billion a month, Bloomberg News reported. Musk called the report nonsense. The company operates a chatbot called Grok that has been folded into the X social network and also Tesla's vehicles."
Tesla shareholders will vote on November 6 on a proposal to authorize a potential Tesla investment in Elon Musk's AI startup xAI. The shareholder proposal was disclosed in Tesla's annual proxy, and the board made no recommendation. Musk has signaled support for a Tesla investment but said the final decision should rest with shareholders. xAI merged with the X social network in March and received a $2 billion investment from SpaceX earlier this year. xAI has raised billions, is spending heavily on data centers and specialized chips, and operates the Grok chatbot integrated into X and Tesla vehicles.
Read at www.mercurynews.com
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