Tesla And xAI Merger? Here’s What CEO Elon Musk Says

Tesla CEO Elon Musk said on Monday that he does not support a merger between Tesla, xAI, his artifical intelligence startup known for the Grok chatbot, which competes with OpenAI's ChatGPT.

In a post on X (formerly Twitter), Musk responded “No” when a user asked Tesla investors if they favored a merger between the electric carmaker and xAI.

Merger between Tesla and xAI?
His comment came just a day after suggesting Tesla shareholders should vote on whether the EV giant can invest in xAI.

From Investment Talk to Rejection
Musk had earlier stated, “It would be great” if Tesla could invest in xAI, adding that a shareholder vote would be necessary to proceed. However, his latest remarks appear to shift away from any such collaboration.

Tesla and xAI have not yet responded to Reuters’ requests for comment on the matter.

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xAI’s Skyrocketing Valuation and SpaceX Backing
The AI startup has quickly become a financial juggernaut. In March, xAI acquired X (formerly Twitter) in a $33 billion deal, valuing the combined entity at $80 billion. According to sources cited by Reuters in June, xAI is now in talks to raise funds at a valuation exceeding $120 billion, with figures as high as $200 billion also being floated.

Further fueling its momentum, the Wall Street Journal reported on Saturday that Musk’s aerospace firm SpaceX has committed $2 billion to xAI as part of a $5 billion equity round.

As Musk continues to juggle leadership roles across Tesla, xAI, SpaceX, and X, questions loom over how he plans to navigate the growing complexities of his empire — especially when potential conflicts of interest are now drawing scrutiny from shareholders and regulators alike.


(With Inputs From Reuters)