Tesla drops $2B into Elon Musk's xAI as part of major AI push
Business
Tesla is investing $2 billion in xAI, Elon Musk's AI company, joining a massive $20 billion Series E funding round with big names like NVIDIA and Fidelity.
The deal should wrap up in early 2026, pending regulatory green lights.
Why Tesla's betting big on AI
This move is all about supercharging Tesla's own artificial intelligence—especially for its Optimus robots, self-driving cars, and future semitrucks.
The investment terms match what earlier investors got.
Teaming up for next-gen tech
Alongside the cash, Tesla and xAI entered into a framework agreement to evaluate potential AI collaborations between the companies.
This partnership aims to fast-track Tesla's Master Plan Part IV: making smarter robots and vehicles by blending digital smarts (like xAI's Grok language model) with real-world tech.