Elon Musk is asking his X followers if Tesla should invest $5 billion in xAI via a poll

Tesla CEO Elon Musk has initiated a poll on social media platform X, asking users if the electric carmaker should invest $5 billion in his AI startup, xAI. Early results show most users favour the investment. Musk clarified that the poll is to gauge public opinion, with formal approval needed from Tesla's board and shareholders. This comes after Tesla reported its lowest profit margin in five years, attributed to price cuts and increased AI project spending.

During Tesla's earnings call, Musk mentioned that xAI could aid in advancing full self-driving capabilities and developing a new Tesla data centre. He also highlighted the potential for integrating xAI's chatbot, Grok, with Tesla's software.

Approximately four hours after the poll was posted, around 440,189 people had participated, with 69.5 per cent voting in favour of the investment and 30.5 against it.

Musk launched xAI last year with the aim of creating an alternative to ChatGPT. The startup raised $6 billion in series B funding in May, reaching a post-money valuation of $24 billion. Key investors include Andreessen Horowitz and Sequoia Capital. Musk has indicated that a quarter of xAI will be owned by investors in X, the social media platform formerly known as Twitter, which Musk purchased for $44 billion.

On the earnings call, Musk dismissed concerns about diverting Tesla resources to his other ventures. In June, CNBC reported that Musk ordered Nvidia to ship thousands of AI chips intended for Tesla to xAI and X, due to a lack of space in Tesla's data centre.

Musk is known for using polls on X to make decisions. In 2021, he asked users if he should sell 10 per cent of his Tesla stake, and proceeded to sell shares shortly after the poll.

While the poll results show public interest, the ultimate decision lies with the shareholders and board members who need to weigh the potential benefits and risks of such a significant investment.