Musk Defers xAI Investment Decision to Tesla Shareholders

Elon Musk has shifted the decision-making power regarding potential investments in xAI to Tesla shareholders. During Tesla's second-quarter earnings call, Musk emphasized that any shareholder proposals would be welcome, stating, "It's not up to me." This follows his earlier social media posts hinting at Tesla's possible involvement in funding xAI.

Tesla CFO Vaibhav Taneja echoed Musk's stance, deferring the matter to formal shareholder processes. The company's next annual general meeting on November 6 could serve as a platform for investors to vote on the proposal, though its inclusion on the agenda remains uncertain.

xAI, Musk's AI venture launched in 2023, has struggled to gain traction in a crowded market dominated by players like OpenAI and Google DeepMind. Its flagship product, the Grok chatbot, has shown promise but lacks the broad adoption or corporate partnerships seen with competitors.