Elon Musk wants $5 billion from Tesla board for his AI startup

 

Elon Musk wants $5 billion from Tesla board for his AI startup

This isn’t the first time Musk has faced criticism over potential conflicts of interest among the companies he owns and runs.

BY Reuters

Tesla CEO Elon Musk said on Thursday he and the board of the electric vehicle company will discuss making a $5 billion investment in his artificial intelligence startup xAI, fueling concerns about a conflict of interest.

Musk, the world’s richest person, launched xAI last year in a bid to compete with Microsoft-backed OpenAI. That sparked concerns he may allocate some resources of the automaker to the AI company.

Many Musk fans have supported the idea: On Tuesday, Musk launched a poll asking users on social media platform X whether Tesla should invest $5 billion in xAI. More than two-thirds of nearly 1 million respondents voted in favor. It is not clear how many are Tesla investors.

The poll came shortly after Tesla said its second-quarter automotive gross margin and profit fell short of Wall Street estimates on Tuesday as the company cut prices and offered incentives to boost sales.

“Looks like the public is in favor. Will discuss with Tesla board,” Musk said in a post on X on Thursday.

During Tesla’s earning conference call on Tuesday, Musk said xAI would be “helpful in advancing full self-driving and in building up the new Tesla data center,” adding that there are opportunities to integrate xAI’s chatbot, Grok, with Tesla’s software.

Despite a frenzy of investment, most AI firms are still working out business models while spending heavily on technology.

 

Fast Company

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