Tesla to invest $2 billion in xAI, Elon Musk’s OpenAI competitor

Source Domain: www.cnbc.com

Tesla has agreed to invest $2 billion into Elon Musk’s xAI, a company he launched to compete with established AI firms like OpenAI.
This investment is part of xAI’s broader $20 billion financing round.
xAI is well-known for creating Grok, an AI chatbot and image generator that recently caused global regulatory controversies.
Musk formed xAI as a Nevada public benefit corporation in 2023 but did not disclose its existence to Tesla shareholders at the time.
Regulatory bodies in Europe, California, and several other countries are probing xAI for issues related to deepfake explicit images created by Grok.
Tesla includes Grok in some of its electric vehicle infotainment systems and is exploring potential AI collaborations.
The deal with xAI is subject to customary regulatory conditions and is expected to close in Q1 2026.

You may have missed