Elon Musk Leverages His Business Empire to Realize AI Ambitions as His Cash-Burning Venture Seeks Tesla Shareholder Support
According to Jinse Finance, funds from Elon Musk’s business empire are increasingly converging in one direction: artificial intelligence (AI). On Sunday, the billionaire stated that he plans to let Tesla shareholders vote on whether the company should invest in xAI, the AI firm he founded two years ago. Sources familiar with the matter revealed that Musk’s space transportation company, SpaceX, has recently agreed to invest about $2 billion in xAI. Musk said he does not support merging xAI with other companies, but hopes Tesla investors can share in the benefits of xAI’s growth. In March this year, xAI was merged into Musk’s social platform X through an all-stock transaction, reaching a valuation of $113 billion. However, Musk did not specify how investments from his various companies would curb xAI’s current monthly burn rate of $1 billion. xAI is striving to develop advanced AI models to compete with rivals such as OpenAI, but it has yet to gain a foothold among major enterprise clients or establish a core presence within the developer community.
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