Tesla investing in xAI would amount to another bailout for Musk Venture. The automaker would benefit more if it invested $5 billion elsewhere. Just five weeks after Tesla shareholders re-approved his unprecedented pay package, the CEO appears to be preparing to try his luck. In addition to Tesla posting another set of disappointing quarterly earnings, the billionaire is launching an indirect bailout for investors in his social media company formerly known as Twitter. This rescue operation involves xAI — Musk’s wannabe OpenAI company — and X, which is still reeling from what its owners have done since the disastrous $44 billion acquisition dollars almost two years ago.

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Before we get into that, let’s get a little background. Shortly after announcing the creation of a company to compete with ChatGPT, the artificial intelligence chatbot that went viral, Musk made it clear that this wasn’t all he was doing. It didn’t take long for the stake in xAI to become a source of consolation for Musk’s collapse in value at X. In May of this year, xAI announced it had raised $6 billion at a pre-capital valuation of 18 billion dollars.

During Tesla’s Q2 earnings call on Tuesday, as executives answered questions submitted in advance by investors, Musk was asked to provide any updates on investing in xAI — an unexpected prospect. Musk said Tesla is “learning quite a bit” from xAI, then vaguely mentioned that the startup is developing the automaker’s driver assistance features and helping build a data center. new material.