The share purchase was related to xAI’s $20 billion financing round announced earlier this month. When Musk formed xAI as a Nevada public benefit corporation in March 2023, he did so without immediately disclosing the existence the company to Tesla shareholders. He debuted xAI in July that year, and the company dropped the public benefit corporation and related commitments in 2024. Of late, xAI has been at the center of regulatory probes across the globe concerning Grok. Tesla includes Grok as a feature in some electric vehicle infotainment systems.