• News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Thursday, August 21, 2025
  • Login
Auto Journal Africa
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Ask Autojorunal AI
No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
No Result
View All Result
Morning News
No Result
View All Result
Home News

Elon Musk proposes $5 bn xAI Investment to Tesla board

David Ijaseun by David Ijaseun
July 28, 2024
in News, Tech
0
Elon Musk proposes $5 bn xAI Investment to Tesla board
861
SHARES
9.7k
VIEWS
Share on FacebookShare on Twitter

Elon Musk, CEO of Tesla, has announced plans to discuss a $5 billion investment in his artificial intelligence startup, xAI, with the Tesla board. The move, revealed on Thursday, has sparked discussions about potential conflicts of interest given Musk’s dual roles.

Musk, the world’s richest person, founded xAI last year to rival Microsoft-backed OpenAI. This initiative has raised eyebrows, with some expressing concern over the possibility of diverting Tesla resources to support the AI venture.

READ ALSO

Nigeria’s auto industry dreams need funding, power, stability to become reality

Global EV sales slow to 21% growth in July as China cools, Europe surges

Despite the concerns, Musk’s followers seem supportive. A social media poll launched by Musk on X (formerly Twitter) saw more than two-thirds of nearly one million respondents favouring the investment. However, the number of respondents who are Tesla investors remains unclear.

“Looks like the public is in favour. Will discuss with Tesla board,” Musk stated in a post on X.

This announcement came on the heels of Tesla’s second-quarter earnings report, which revealed that automotive gross margin and profit had fallen short of Wall Street estimates due to price cuts and sales incentives. During the earnings call, Musk highlighted the potential benefits of xAI, suggesting it could advance Tesla’s full self-driving capabilities and support the new Tesla data center. He also hinted at integrating xAI’s chatbot, Grok, with Tesla’s software.

The AI industry, despite attracting massive investments, is still grappling with establishing profitable business models. Brent Goldfarb, a business school professor at the University of Maryland, voiced skepticism about the proposed investment. “It’s hard to make a claim that this is in the best interest of Tesla shareholders,” Goldfarb commented, likening the situation to a transfer of Tesla wealth. “In AI, nobody is quite sure where the money is going to be made and who is going to pay for it. AI right now has all the signs of a bubble.”

Musk’s history with AI startups adds another layer to the narrative. In 2018, he departed from OpenAI, an organization he co-founded, due to potential conflicts with Tesla’s AI development for self-driving vehicles.

Read more on Tesla’s energy business surges in Q2 2024, boosts earnings

Tags: Elon MuskHeadlineTesla

Related Posts

Nigeria’s auto industry dreams need funding, power, stability to become reality
News

Nigeria’s auto industry dreams need funding, power, stability to become reality

August 18, 2025
Electric vehicle sales
Electric Vehicles

Global EV sales slow to 21% growth in July as China cools, Europe surges

August 17, 2025
5 reasons you should attend the Nigerian Auto Assembly Summit 2025
Auto Assembly Summit 2025

5 reasons you should attend the Nigerian Auto Assembly Summit 2025

August 17, 2025
luxury cars seized in London
News

London police seize 72 luxury cars worth $9 million in crackdown on reckless driving

August 16, 2025
BYD Yangwang
Electric Vehicles

BYD’s 3,000-HP supercar aims to dethrone Rimac

August 16, 2025
Toyota profit in Q1 2025
News

Toyota Q1 2025 sales rise but profit drops as costs bite, outlook steady

August 12, 2025
Next Post
Mitsubishi Motors

Mitsubishi Motors joins Honda-Nissan alliance to boost global sales

POPULAR NEWS

Inferno at Toyota 1000 Desert Race consumes 49 cars

Inferno at Toyota 1000 Desert Race consumes 49 cars

July 3, 2023
Mobius Motors

Mobius Motors: Rising taxes, competition ends Kenyan SUV maker’s journey

August 7, 2024
Autojournal car race

Get ready for the biggest RACE show this December in Nigeria

August 12, 2024
From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

October 25, 2024
Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

August 22, 2023

EDITOR'S PICK

the Audi AI:TRAIL quattro

Audi’s charge towards electromobility seen in six concept cars

April 12, 2023
Kawasaki Ninja 650

Adventure and Precision: The three must-have Kawasaki motorcycles in 2025

February 6, 2025
Toyota shares

Uttar Pradesh’s hybrid tax waiver boosts Toyota, challenges Tata and Mahindra

August 12, 2024
CES 2025

Luxury, speed, and flight: CES 2025 highlights stunning automotive tech

January 12, 2025

About

Auto Journal Africa is the leading online and print magazine for automobiles in Africa.

Follow us

Recent Posts

  • Why Orbit’s CF-1 could be Nigeria’s first truly affordable electric vehicle
  • Auto Boss: Meet Kenneth Ukpabia, the founder who turned petrol pain to electric gain
  • How Orbit is building Nigeria’s EV future, one bike at a time
  • Nigeria’s auto industry dreams need funding, power, stability to become reality

Links

  • Privacy Policy
  • About Us
  • Contact Us
  • News
  • Reviews
  • Events
  • Tools
  • For Sale

© 2023 Auto Journal

No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa

© 2023 Auto Journal

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In