{"id":74842,"date":"2024-07-25T15:34:09","date_gmt":"2024-07-25T19:34:09","guid":{"rendered":"https:\/\/autosector.com\/?p=74842"},"modified":"2024-07-25T15:34:09","modified_gmt":"2024-07-25T19:34:09","slug":"elon-musk-will-discuss-tesla-investing-5-billion-private-ai-company","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=74842","title":{"rendered":"Elon Musk will ‘discuss’ Tesla investing $5 billion in his private AI company"},"content":{"rendered":"
\n\t\"Elon<\/figure>\n

Elon Musk says that he will \u2018discuss\u2019 Tesla investing $5 billion in xAI, his own private artificial intelligence company.<\/p>\n

<\/p>\n

For the last few years, Musk has claimed that \u201cTesla is an AI company.\u201d<\/p>\n

Despite that claim and having a fiduciary duty to Tesla shareholders as the chief executive of the company, Musk decided to start his own private AI startup.<\/p>\n

The CEO\u2019s reasoning was that it was more difficult to recruit some AI researchers at Tesla than at an AI startup. Ironically, the official reason he gave for leaving OpenAI, another AI startup, was because it was starting to compete with Tesla on talent.<\/p>\n

Musk and Tesla\u2019s board are currently being sued for breach of fiduciary duty<\/a> over the xAI issue. The lawsuit cites the talent acquisition issue, Musk\u2019s threat not to build AI products at Tesla if he doesn\u2019t get 25% control over the company<\/a>, and, more recently, the fact that Musk diverted H100s processors meant for Tesla to xAI<\/a>.<\/p>\n

The shareholders suing Musk and Tesla\u2019s board of directors are asking for Musk to transfer his shares of xAI to Tesla along with other damages.<\/p>\n

Despite this mess of a governance situation, Musk is now planning to discuss<\/s> tell the board to bring a $5 billion investment into xAI to a shareholder vote.<\/p>\n

As usual, he claims that he is doing it because a poll on X has approved it:<\/p>\n

\n
\n
\n

Looks like the public is in favor. Will discuss with Tesla board.<\/p>\n

\u2014 Elon Musk (@elonmusk) July 25, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Musk has manipulated the public using Twitter polls before. In 2021, the CEO claimed that he would sell 10% of his Tesla stocks if a Twitter poll approved it amid growing concerns about taxing the rich.<\/p>\n

The CEO claimed that selling his stocks would force him to pay taxes. In fact, Musk was due to sell a lot of stocks to cover his stock options that were due to be exercised. He was facing a stock sale and large tax burden regardless of the poll\u2019s result.<\/p>\n

Electrek\u2019s Take<\/h2>\n

I ran my own highly scientific poll on Twitter, and I got the inverse results:<\/p>\n

\n
\n
\n

Should Tesla, which Elon claims is an AI company first, invest $5 billion into xAI, an AI company privately owned by Elon Musk?<\/p>\n

\u2014 Fred Lambert (@FredericLambert) July 25, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Elon\u2019s claim that he will \u201cdiscuss\u201d an investment in xAI with Tesla\u2019s board is ridiculous. We already know that the board is fully under his control, as a judge ruled. He will tell the board to bring this to a shareholder vote.<\/p>\n

However, I wouldn\u2019t be shocked if he ends up facing some pushback at the board level this time since they are also being sued for not doing anything about his breach of fiduciary duty.<\/p>\n

Considering the entire xAI situation is the core of the lawsuit, they may think twice about backing the idea simply for optics amid the lawsuit.<\/p>\n

This lawsuit is strong, in my opinion, and gets stronger every time Elon opens his mouth. Just at Tesla\u2019s earnings call this week, Elon complained about the cost and availability of NVIDIA\u2019s H100 processors right after he sent a large shipment of them meant for Tesla to xAI.<\/p>\n

That, combined with the fact that Elon himself claimed that a conflict of interest regarding talent recruiting pushed him to leave OpenAI, the fact that Twitter and xAI hired from Tesla, his open threat about AI products at Tesla, and more, it looks like an easy case for the shareholders.<\/p>\n

Yet, most of those shareholders are still happy backing him. The reasonable ones are selling Tesla\u2019s stock \u2013 making sure that only the Elon cultists remain and Elon can do whatever he wants.<\/p>\n

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FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Elon Musk says that he will \u2018discuss\u2019 Tesla investing $5 billion in xAI, his own private artificial intelligence company. For the last few years, Musk has claimed that \u201cTesla is an AI company.\u201d Despite that claim and having a fiduciary duty to Tesla shareholders as the chief executive of the company, Musk decided to start […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-74842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74842"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74842"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}