Breaking: Elon Musk Says He’ll Propose to Tesla’s Board an Alliance Between Tesla, X(Twitter), & xAI Amid Sam Altman, OpenAI, Microsoft Drama

If you have been following tech and finance news the past few days, you know that the hottest commodity in the world currently has become AI engineers and machine learning technicians.

This all started when OpenAI, the company behind ChatGPT, unexpectedly fired its CEO, Sam Altman on Friday. Following this news, a number of top AI engineers currently working at OpenAI announced their intention to leave the company unless Altman was returned to his post as CEO.

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When OpenAI’s board of directors relented, Microsft CEO Satya Nadella poached Altman to create a new advanced AI research group within Microsft. Microsoft made this move in hopes that several neural net researchers who were to leave OpenAI would join the tech giant.

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And now, when you think things can’t get any weirder, a few hours ago, it was announced Sam is back as CEO of OpenAI and will work in collaboration with Microsoft but from the outside.

It was entertaining to follow the telenovela, however, what does this all have to do with Elon Musk and Tesla? To begin with, Elon Musk together with Sam and two other engineers was the founder of OpenAI.

Not only that, Musk gave OpenAI its name and provided the entirety of the initial fund for the company. Musk set up OpenAI as a non-profit that will freely share its latest AI research with the public. However, after Elon left OpenAI’s board, the organization was rebranded as a for-profit company that keeps all its intellectual property behind closed doors.

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This is still Silicon Valley trivia. Why does all this matter to Tesla? Tesla, in a bid to develop the first self-driving vehicle, is currently at the forefront of AI research. In addition, a huge chunk of Tesla’s $600 billion valuation depends on the fact that Tesla is seen as a tech company with a bright future in AI-related products.

For comparison, the largest automaker in the world, Toyota, which is expected to sell 5 times more vehicles than Tesla this year, only has a $300 billion valuation. The reason Tesla is valued twice as much as Toyota while selling one-fifth of the vehicles is largely due to Tesla’s perceived advantage in tech and AI software and hardware research.

As this week has made it abundantly clear with the overwhelming attention the Sam Altman, Microsft, and OpenAI drama has generated, beyond any doubt, the stock market is obsessed with AI, and Tesla investors want in.

So with OpenAI, which employs several former Tesla AI researchers, including Tesla’s long-time Autopilot head, Andrej Karpathy, choosing to remain in bed with Microsoft, how can Tesla investors join in the booming AI market?

That’s where Elon Musk’s two companies, X (formerly known as Twitter) and xAI, come in. I don’t think X(Twitter) needs any introduction, however, xAI is Musk’s latest startup and is set up with the aim “to understand the true nature of the universe.”

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xAI has currently hired some of the brightest minds in the neural net training field and is working on producing a ChatGPT competitor Large Language Model (LLM) called Grok. To train Grok, Musk has allowed xAI researchers access to Twitter’s database, and in return X (Twitter) investors get 20% ownership of xAI.

This brings us back to today, YouTuber and Tesla Investor Dave Lee put a question forward to Musk writing “I'd like to see a partnership between Tesla and xAI. 1. Tesla provides a monetary investment into xAI as well as DOJO compute resources going forward. 2. xAI gives Tesla some equity and access to Grok AI going forward. What do you think Elon Musk?

Another Tesla Investor chimed in saying “I’m 100% behind this. Many Tesla retail investors would love to have some skin in the game with xAI. I hope Elon considers this proposal.”

Musk to everyone’s surprise agreed with the Tesla investors’ request and responded simply by saying “Will discuss with Tesla Board.”

Will discuss with Tesla Board
— Elon Musk (@elonmusk) November 22, 2023

This is exciting and should further help Tesla in branching away from its core business of selling electric vehicles into other exciting future opportunities.

Almost everything about this deal sounds good, however, given the tie-up between xAI & X (Twitter), a new Tesla deal with xAI also means a deal with Twitter. And given the political nature of the X platform, it can bring unwanted scrutiny to Tesla.

Currently, although exciting, the deal between Tesla and xAI is in its very early stage, however, we’ll be sure to keep you posted as we learn more about the issue. Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.

So what do you think? Are you excited to see Tesla further venture into the AI sector? Also, do you think it’s in Tesla’s best interest to partner with xAI and X(Twitter)? Let us know your thoughts in the comments below.

Image: Joe Tegtmeyer on X

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Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.