Musk says he Doesn't support a merger between Tesla and xAI

Elon Musk has made it clear that he does not support a merger between Tesla and his artificial intelligence startup xAI, responding with a simple "No" when asked about the possibility on the social media platform X.

This statement came shortly after Musk announced that he would seek approval from Tesla shareholders to allow the electric vehicle company to invest in xAI, signaling his openness to financial collaboration without fully combining the two businesses.

Musk’s position highlights his vision of keeping Tesla and xAI as separate entities, while still exploring ways to strengthen their relationship through investment, pending board and shareholder approval.

This stance contrasts with earlier assumption and Musk’s own previous comments that a merger was “not out of the question,” but would require shareholder support. Instead, Musk is focusing on leveraging investment as a strategic tool to integrate AI advancements into Tesla’s operations without merging the companies outright.

Meanwhile, SpaceX has committed $2 billion to xAI as part of a $5 billion equity funding round, underscoring Musk’s commitment to boosting xAI’s growth and technological capabilities.

xAI, which recently merged with the social media platform X, has rapidly expanded its AI footprint, with ambitions to compete with major players like OpenAI.

Tesla is also set to benefit from xAI’s innovations, such as the integration of the Grok AI chatbot into Tesla vehicles. Musk’s approach allows Tesla to gain from xAI’s AI expertise while maintaining distinct corporate structures, balancing innovation with operational independence.

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