Elon Musk seems to be contemplating whether or not his Electrical Automobile (EV) manufacturing firm, Tesla, ought to make investments $5 billion in his synthetic intelligence (AI) startup, xAI.
On July 24, Musk polled his followers in regards to the potential funding, with early outcomes exhibiting help for the transfer. Nevertheless, Musk clarified that the ballot was solely exploratory and any choice would want board and shareholder approval.
Musk mentioned:
“Board approval and shareholders vote are wanted, so that is simply to check the waters.”
As of press time, greater than 500,000 individuals had participated within the ballot, with round 69% voting in favor of the transfer.
In the meantime, this ballot has raised considerations about Musk diverting Tesla’s assets to different ventures. But, throughout Tesla’s July 23 earnings name, Musk dismissed these worries. He emphasised that xAI may advance Tesla’s self-driving capabilities and support in growing a brand new information heart. Musk additionally talked about alternatives to combine xAI’s chatbot, Grok, with Tesla’s software program.
Nevertheless, if the funding will get accredited, it might considerably enhance xAI’s valuation to greater than $24 billion. The transfer would additionally present the AI startup ample funding to compete with leaders like OpenAI, Google, and Anthropic within the generative AI discipline.
Tesla’s Bitcoin holdings unchanged
In a parallel growth, the earnings name additionally revealed that Tesla’s Bitcoin holdings remained unchanged for the eighth consecutive quarter, with no purchases or gross sales between April and June 2024.
The report exhibits the agency held $184 million of digital property as of June 30. Nevertheless, Bitcoin Treasuries information pegs Tesla because the world’s third-largest Bitcoin holder, behind MicroStrategy and Marathon Digital. The EV producer holds 9,720 Bitcoin, valued at about $640 million at press time.
Tesla started its Bitcoin journey in February 2021 by buying $1.5 billion value of Bitcoin. Within the second quarter of 2022, it bought over 30,000 Bitcoin for $936 million. Since then, Tesla has remained silent about its Bitcoin holdings regardless of neighborhood requires extra purchases.
