xAI

SpaceX has quietly confirmed what many in Washington already suspected: Elon Musk is far from done with politics. In its latest investor filing, the company stated that Musk “may continue to hold similar public roles and dedicate significant time and energy to them,” indirectly confirming that, despite recent tensions with Republicans, he hasn't abandoned his political ambitions.
📄 This disclosure appeared in Tuesday’s materials related to a new stock buyback program. It's the first time in SpaceX's history that Musk’s political engagement has been mentioned in the company’s official investor risk factors.

Fallout With Trump Doesn't Mean Musk's Political Story Is Over
Earlier this year, Musk joined Donald Trump’s administration as an advisor on government efficiency. However, the relationship quickly unraveled. After Congress approved a controversial tax-and-spending bill, Musk lashed out at both Trump and GOP lawmakers, calling them “fake fiscal conservatives.” He also announced the founding of a new political movement, “The American Party,” vowing to “give power back to the people.”
Though he has gone quiet on that front since, the new language in SpaceX’s documents suggests he hasn’t completely let go of the idea.

SpaceX Adds Political Risks to $400 Billion Valuation
The warning came alongside SpaceX’s announcement of a $1.25 billion share buyback offer, aimed at employees and early investors. The company, still privately held, is now internally valued at around $400 billion – making it the most valuable private company in the world.
The mention of Musk’s political activities in the “risk factors” section is a signal to investors: his unpredictable political moves could impact the company’s operations, especially given SpaceX’s deep ties to the U.S. government. The company is a major contractor for NASA and the Pentagon, and it operates over 8,000 Starlink satellites in orbit.

Business and Politics, Intertwined
Although Musk declared in May that he was refocusing exclusively on Tesla, SpaceX, and xAI, his continued activity on X and behind the scenes shows that business and politics remain closely linked in his world.
“Back to working 7 days a week. Sleeping at the office when the kids aren’t around,” Musk wrote on X shortly after his fallout with Trump – signaling that his energy is back in full swing, on all fronts.

#ElonMusk , #SpaceX , #USGovernment , #Tesla , #XAI

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

During Tesla’s Q2 earnings call, Elon Musk surprised listeners by saying that any potential investment by the automaker into his AI startup xAI will not be his unilateral decision—it will be left to Tesla’s shareholders. He was responding to a question about whether Tesla could fund or take an equity stake in the rapidly evolving artificial intelligence company.
“Shareholders can propose whatever they want,” Musk said. “This isn’t my decision.”
Although he recently hinted on his own social platform X that he would welcome a tie-up between Tesla and xAI, he’s now clearly deferring the final say. Tesla’s CFO Vaibhav Taneja added that this isn’t the venue to discuss such matters, suggesting that the company will leave it to formal shareholder processes.
Tesla’s next annual shareholder meeting is scheduled for November 6, potentially giving investors the chance to raise and vote on the issue. Musk didn’t say whether the proposal would be on the official agenda, but he made it clear a vote is inevitable.

xAI: Grok, Tesla, and the Future of AI
Musk founded xAI in 2023, and the company is still finding its footing in the hyper-competitive AI landscape. Its main product is a chatbot called Grok, marketed as sharper, more sarcastic, and “more honest” than ChatGPT. Unlike rivals such as OpenAI, Anthropic, or Google DeepMind, xAI hasn’t yet signed major enterprise customers or widely opened up access to developers.
Still, xAI already collaborates with Tesla. The startup is a corporate customer of Tesla Energy, purchasing Megapack utility-scale batteries. Tesla also has ambitious plans for Grok inside its vehicles, where the AI could serve both drivers and passengers.
xAI’s momentum is additionally supported by other Musk-led, VC-backed firms. Bloomberg reported that SpaceX invested around $2 billion into xAI in June. That has sparked questions about whether Tesla—Musk’s most valuable publicly traded company—should invest in the AI venture at all.
Musk has previously insisted that Tesla shareholders should be involved in xAI’s likely expansion, given the technological overlap and shared leadership between the two companies. “It’s a good idea for Tesla shareholders to have access to AI,” he wrote on X earlier this year.

Tesla Shareholders Have Been Here Before
This wouldn’t be the first time Tesla shareholders were asked to vote on one of Musk’s controversial proposals. In 2016, they approved Tesla’s $2.6 billion acquisition of SolarCity, a solar company founded by Musk’s cousins that was struggling at the time. The deal drew lawsuits and criticism over potential conflicts of interest, but Musk defended it as a long-term strategic move.
Now, with Musk simultaneously running Tesla, SpaceX, xAI, X, and Neuralink, concerns about overlap, governance, and fairness are resurfacing. Critics argue that Tesla—being a public company with a fiduciary duty to shareholders—should be cautious about supporting Musk’s other ventures unless there’s a clear, demonstrable benefit.
In 2023, Musk even ran an impromptu poll on X asking users whether Tesla should continue developing xAI. Most respondents said yes. Musk later noted that Tesla’s board would consider the option. A formal answer, however, never arrived—until now.

What’s Next?
If Tesla shareholders formally propose an investment and the resolution makes it onto the agenda of the upcoming annual meeting in November, the vote could mark the beginning of a new strategic chapter—one that would bring Tesla even closer to Musk’s ever-expanding ambitions in artificial intelligence.

#ElonMusk , #Tesla , #XAI , #AI , #ArtificialInteligence

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Elon Musk is reportedly aiming to raise up to $12 billion for his company xAI, just weeks after securing $10 billion, as the costly race for artificial intelligence intensifies and infrastructure demands grow.

Partnership with Valor Equity and Plans to Acquire Hundreds of Thousands of Chips
According to sources cited by the Wall Street Journal, Musk's company xAI has struck a deal with Valor Equity Partners, led by longtime Musk backer Antonio Gracias. The fresh capital is expected to fund the leasing of a massive quantity of Nvidia GPUs, essential for training xAI's proprietary language model Grok.
Musk recently stated on X that xAI's goal is to deploy 50 million compute units equivalent to H100 chips within five years. The upcoming data center, Colossus 2, will serve as the backbone of this massive infrastructure.

Bold Ambitions but Minimal Revenue
Despite massive investments, xAI remains unprofitable. In 2025 alone, it reportedly burned through around $13 billion, while generating very limited revenue. Rather than relying on third-party cloud solutions like OpenAI or Anthropic, xAI chose to build its own infrastructure — a move that ensures independence but drastically increases costs.
To navigate this, Musk has reallocated capital from his other ventures. For example, SpaceX invested $2 billion into xAI, and the company also used Grok’s intellectual property as collateral for a $5 billion debt deal.

Colossus: 200,000 GPUs Built in Record Time
In a staggering feat, xAI built its first data center, Colossus, in Memphis, Tennessee in just 122 days, equipping it with 100,000 Nvidia GPUs. Just 92 days later, capacity doubled to 200,000 units.
Nvidia CEO Jensen Huang called this a "superhuman achievement", praising Musk’s unique understanding of engineering, systems architecture, and resource management.

How Will the New GPU Leasing Work?
The planned $12 billion raise is expected to follow a leasing model, in which Valor and other investors create a fund that borrows money to buy GPUs. xAI would then make leasing payments — but if it defaults, it risks losing access to the hardware and Grok itself.
In its previous $5 billion debt issuance, xAI offered investors a 12.5% yield, highlighting both high risk and investor enthusiasm for Musk-led projects.

What If xAI Fails to Repay Its Debts?
Lenders are concerned that AI chips lose value quickly due to evolving models and shifting demand. They are pushing for repayment within three years, along with strict credit limits.
If xAI fails to deliver, creditors could rent the Colossus infrastructure to other AI companies and seize rights to the Grok model, which underpins many of Musk’s AI ambitions.
Additionally, the deal limits xAI's ability to take on more than $5 billion in future debt, excluding new GPU leasing arrangements.

#ElonMusk , #XAI , #SpaceX , #AI , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“