Elon Musk has clarified that he does not support a merger between Tesla (TSLA, Financial), his electric vehicle manufacturing company, and xAI, his artificial intelligence startup. xAI is known for its Grok chatbot, which competes with products like OpenAI's ChatGPT. Musk responded to a post on the X platform, indicating that Tesla investors should not expect a merger between the two companies.
Previously, Musk had suggested that he would seek Tesla shareholders' approval for investing in xAI, describing such an investment as potentially beneficial. Despite these discussions, both Tesla and xAI have not yet responded to requests for comments.
In March, xAI acquired Musk's former company X (previously Twitter) for $33 billion, valuing the merged entity at $80 billion. Reports in June indicated that xAI was in talks to raise funds, with valuations discussed between $120 billion and $200 billion. Additionally, SpaceX, another Musk venture, has committed $2 billion to xAI as part of a $5 billion equity funding round.
