Anthony Scaramucci, founder of SkyBridge Capital, has sparked speculation about a potential merger between Tesla Inc. and xAI, stating that it “feels inevitable” as Elon Musk ramps up efforts to integrate artificial intelligence into his companies.
Scaramucci Sparks Merger Buzz
Scaramucci’s statement came after a report by the Wall Street Journal that a Tesla investor, Stephen Hawk, had submitted a shareholder proposal urging Tesla’s board to authorize an investment in xAI. Musk has expressed support for Tesla investing directly in xAI, his AI startup behind the Grok chatbot.
Shareholder Proposal Puts xAI On The Table
The proposal, which will be voted on at Tesla’s annual meeting on November 6, aims to formalize a partnership between Tesla and xAI. Hawk believes that this partnership is essential to ensure clear mutual benefits for both entities. Previously, Musk had polled his followers on the idea of a merger and stated that he would act in accordance with shareholder wishes.
Musk’s Vision: Real-World AI
Musk has described Tesla as an AI company at its core, focusing on “real-world AI” to power autonomous driving, robotics, and the Optimus humanoid robot. xAI is developing large language models, including Grok, which is already integrated into Optimus and some Tesla vehicles as an AI companion. The two companies also collaborate on energy needs, with xAI purchasing Tesla industrial batteries to power data centers.
Investor Pressure And Market Ambitions
Investors, such as Gene Munster, co-founder of Deepwater Asset Management, believe that combining Tesla with xAI could help the automaker reach an ambitious $8.5 trillion market capitalization. xAI is undergoing internal changes, laying off 500 generalist tutors while expanding its specialist AI teams. The startup, valued at over $100 billion, has raised $10 billion in funding and is reportedly eyeing a valuation as high as $200 billion.
Market Impact
Tesla stock gained 4.39% in regular trading before dipping 0.099% after hours. Benzinga’s Edge Stock Rankings indicate that Tesla maintains a strong positive trend across short, medium, and long-term periods.
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