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said on Wednesday that it’s agreed to invest $2 billion into Elon Musk’s xAI, which he launched almost three years ago as a prospective competitor to OpenAI.
The share purchase was related to xAI’s $20 billion financing round announced earlier this month. The artificial intelligence startup is best known for developing Grok, an AI chatbot and image generator.
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round,” the company said in its fourth-quarter earnings report.
When Musk formed xAI as a Nevada public benefit corporation in March 2023, he did so without immediately disclosing the existence the company to Tesla shareholders. He debuted xAI in July that year, and the company dropped the public benefit corporation and related commitments in 2024.
