Elon Musk is reportedly contemplating whether or not his electrical car (EV) maker Tesla ought to make investments $5 billion in synthetic intelligence (AI) startup xAI.

On July 24, Musk polled his followers about the potential of investing, and early outcomes confirmed assist for the transfer, however Musk made it clear that the survey was solely preliminary and any choice would require approval from the board and shareholders.

Musk stated:

“It requires board approval and a shareholder vote, so that is actually a wait-and-see course of.”

On the time of writing, over 500,000 individuals had participated within the vote, with round 69% voting in favour of the relocation.

In the meantime, the investigation has raised issues that Musk is diverting Tesla's assets to different ventures. However Musk dismissed these issues throughout Tesla's July 23 earnings name. He highlighted that xAI might enhance Tesla's self-driving capabilities and assist develop new information facilities. Musk additionally talked about the chance to combine xAI's chatbot, Grok, into Tesla's software program.

Nonetheless, if the funding is permitted, it could considerably enhance xAI's valuation to greater than $24 billion. The transfer would additionally give the AI ​​startup sufficient funding to compete with leaders within the generative AI house, equivalent to OpenAI, Google, and Anthropic.

Tesla's Bitcoin holdings stay unchanged

On the identical time, the earnings launch additionally revealed that Tesla's Bitcoin holdings have remained unchanged for eight consecutive quarters, with no purchases or gross sales made between April and June 2024.

Based on the report, the corporate holds $184 million value of digital property as of June 30. Nonetheless, information from Bitcoin Treasury exhibits that Tesla is the third-largest bitcoin holder on the earth, behind MicroStrategy and Marathon Digital. The electrical car maker holds 9,720 bitcoin at press time, valued at about $640 million.

Tesla started its Bitcoin efforts in February 2021, buying $1.5 billion value of Bitcoin, earlier than promoting over 30,000 Bitcoin for $936 million within the second quarter of 2022. Since then, Tesla has remained silent about its Bitcoin holdings, regardless of calls from the neighborhood for it to purchase extra.

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