Musk suggests Tesla investor vote on xAI investment, rules out merger

FILE PHOTO: Tesla CEO and X owner Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC, U.S. on November 13, 2024. ALLISON ROBBERT/Pool via REUTERS/File Photo

(Reuters) -Elon Musk ruled out a merger between Tesla and xAI but said he plans to hold a shareholder vote on investment in the artificial intelligence startup by the automaker, in the latest step to deepen integration across his business empire.

His comments followed a Wall Street Journal report on Saturday that SpaceX, Musk's rocket firm, will invest $2 billion in xAI as part of a $5 billion funding round aimed at keeping pace with rivals in the capital-intensive AI race.