Tesla CEO Elon Musk recently launched a poll on social media platform X to gauge user opinion on whether the electric carmaker should invest $5 billion in his artificial intelligence startup, xAI. Early results showed strong support for the investment, with approximately 70% of the participants voting in favor after nearly 386,000 people cast their votes within the first three hours.
“Board approval and shareholder vote are needed, so this is just to test the waters,” Musk clarified regarding the poll. The poll was initiated shortly after Tesla reported its lowest profit margin in five years, attributed to price cuts and increased spending on AI projects. During Tesla’s earnings conference call, Musk mentioned that xAI could significantly contribute to advancing Tesla’s full self-driving capabilities and aid in the development of a new Tesla data center. He also highlighted opportunities to integrate xAI’s chatbot, Grok, with Tesla’s software.
Tesla did not immediately respond to a request for comment, and xAI was also unavailable for comment. Musk, recognized as the world’s richest person, launched xAI last year with the aim of creating an alternative to ChatGPT. The startup secured $6 billion in a series B funding round in May, achieving a post-money valuation of $24 billion, with backers including Andreessen Horowitz and Sequoia Capital.
Previously, Musk indicated that he plans for a quarter of xAI to be owned by investors in X, the social media platform formerly known as Twitter, which he acquired for $44 billion. Despite this, the platform’s value has significantly decreased since the purchase. During the earnings call, Musk addressed concerns that he might be diverting resources from Tesla to his other ventures, dismissing such worries.
In June, reports emerged that Musk had directed Nvidia to ship thousands of AI chips intended for Tesla to xAI and X instead. Musk explained that Tesla’s data center was at full capacity, leaving no room for the chips.
Musk frequently uses polls on X to engage with his audience. In 2021, he conducted a similar poll asking Twitter users if he should sell 10% of his Tesla stake, subsequently selling shares just days after receiving affirmative feedback.
Overall, Musk’s latest poll reflects his ongoing strategy to leverage public opinion and social media engagement to inform and validate significant business decisions. The proposed $5 billion investment in xAI underscores his commitment to advancing AI technology and integrating it within Tesla’s future developments.
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