Elon Musk: No Merger Between Tesla and xAI, But Open to Strategic Investment

Elon Musk has clarified that he does not support a merger between Tesla and xAI, his AI startup founded in 2023. However, the tech billionaire emphasized that he is open to Tesla investing in xAI, if it makes strategic sense.

Musk Rejects Merger Rumors, Emphasizes Independence

Responding to speculation on social media, Musk stated on X (formerly Twitter):

“I don’t think Tesla and xAI should merge. But I do support Tesla investing in xAI if it’s strategically beneficial.”

This comes amid growing rumors that Musk might combine Tesla’s AI efforts with xAI to better compete with leading players like OpenAI, Google DeepMind, and Meta.

xAI: Musk’s Vision for Truth-Seeking Artificial Intelligence

xAI was launched by Musk with the mission to build “truthful AI” and to serve as a transparent alternative to OpenAI, which he has criticized for straying from its original mission. xAI’s flagship product is Grok, a chatbot that is currently integrated into the X platform.

Musk aims to position xAI as a major force in general-purpose AI, separate from Tesla’s automotive-focused AI technologies.

Tesla’s AI Focus Remains Strong, But Specialized

Tesla has long invested in AI development, especially in autonomous driving (Autopilot, FSD), its Dojo supercomputer, and the Optimus humanoid robot. Musk views AI as a key driver of Tesla’s future—but maintains a clear distinction between Tesla’s applied AI and xAI’s broader pursuit of artificial general intelligence (AGI).

Keeping the two entities operationally independent allows each to grow in its own direction, without creating internal conflicts.

Investment Possibilities Still on the Table

Although Musk ruled out a merger, he did not close the door to future investments or partnerships between Tesla and xAI. This potential synergy has captured the attention of investors and tech analysts, especially as major firms race to secure a competitive edge in the booming AI space.