Musk To Discuss Investing $5B in xAI After Seeing Poll Results - Microsoft (NASDAQ:MSFT), Alphabet (NASDA

Benzinga

2024-07-26 00:58

Elon Musk plans to discuss investing $5B in his AI startup xAI with Tesla board, following public support on his social media platform.

　　Business tycoon Elon Musk plans to talk with the board of Tesla, Inc.TSLA about possibly investing $5 billion in his artificial intelligence startup xAI.

　　What Happened: Earlier this week, Musk gave his 191 million X followers a chance to weigh in on the possible expenditure by placing a yes-no survey on the platform on Tuesday.

　　“Should Tesla invest $5B into xAI, assuming the valuation is set by several credible outside investors？” Musk asked.

　　He also wrote “Board approval & shareholder vote are needed, so this is just to test the waters” in parentheses.

　　About 67.9% of 958,086 voters approved the idea by the next day. And Musk indicated that he plans to discuss the heavy investment with his seven fellow Tesla board members.

　　“Looks like the public is in favor. Will discuss with Tesla board,” he wrote on X.

　　Why It Matters: Musk continues to blur the line between all the entities he owns.

　　Musk, Teslas largest shareholder, previously sold large blocks of the EV stock to help finance his $44-billion purchase of X, back when it did business as Twitter.

　　The billionaire founded xAI last year in an effort to compete with Alphabet Inc.sGOOG AI tech as well as OpenAI producer ChatGPT and its corporate backer, Microsoft CorporationMSFT.

　　The xAI startup raised $6 billion in a series B funding in May, giving it a post-money valuation of $24 billion.

　　Price Action: Tesla has risen 3.69% to $223.95 as of Thursdays late-afternoon trading, while exchange-traded funds that hold Tesla stock also made gains, some leaping nearly 8%.

T-Rex 2X Long Tesla Daily Target ETFTSLT jumped 7.83%.
Direxion Daily TSLA Bull 2X SharesTSLL gained 7.87%.
Consumer Discretionary Select Sector SPDR FundXLY edged up 0.77%.
Direxion Daily Concentrated Qs Bull 2X SharesQQQU moved up 0.20%.
Direxion Daily Consumer Discretionary Bull 3X SharesWANT gained 0.64%.

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