Elon Musk is exploring a significant investment in his AI startup, xAI, by considering a $5 billion infusion from Tesla. On July 24, Musk conducted a poll on Twitter to gauge public opinion on the potential investment. The poll received over 500,000 responses, with approximately 69% in favor of the move. However, Musk clarified that this was merely exploratory, and any final decision would require approval from Tesla’s board and shareholders.
Strategic Benefits for Elon Musk and Tesla
During Tesla’s July 23 earnings call, Elon Musk addressed concerns about diverting resources to xAI. He argued that the AI startup could enhance Tesla’s self-driving capabilities and support the development of a new data center. Additionally, he mentioned potential integrations of xAI’s chatbot, Grok, with Tesla’s software. If the investment proceeds, it could boost xAI’s valuation to over $24 billion, providing the startup with sufficient funding to compete with AI industry leaders such as OpenAI, Google, and Anthropic.
Tesla’s Bitcoin Holdings Remain Steady
In related news, Tesla’s earnings report disclosed that its Bitcoin holdings remained unchanged for the eighth consecutive quarter. As of June 30, the company held $184 million in digital assets, including 9,720 Bitcoin valued at approximately $640 million. Tesla, which began its Bitcoin journey with a $1.5 billion purchase in February 2021, has not made any new acquisitions or sales of Bitcoin since selling over 30,000 BTC for $936 million in the second quarter of 2022.
Community Reaction and Future Prospects
The community’s response to Tesla’s Bitcoin strategy has been mixed, with some calling for more aggressive acquisitions. However, Tesla remains focused on leveraging its existing digital assets while evaluating strategic investments like the one proposed for xAI. This move highlights Musk’s ongoing efforts to integrate advanced technologies across his ventures, potentially positioning Tesla and xAI at the forefront of the AI and EV industries.
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