The move is controversial given that Tesla shareholders voted against authorising an investment in xAI late last year. READ ALSO: Tesla shareholders approve Elon Musk’s record-breaking $1 trillion pay package Despite the outcome, Tesla proceeded with the investment, arguing that it aligns with the company’s long-term strategy. As part of the investment, Tesla and xAI entered into a framework agreement to explore deeper AI collaborations. The companies already have operational links, with Tesla supplying Megapack batteries to power xAI data centres and integrating the Grok chatbot into some vehicles. Tesla has disclosed a $2 billion investment in xAI, the artificial intelligence startup founded by CEO Elon Musk, marking a significant escalation in the carmaker’s AI ambitions and reviving concerns over corporate governance.