+0.13% Tesla has announced a $2bn investment in xAI, the artificial intelligence company founded by Elon Musk, as part of a $20bn funding round launched in January. The commitment was made on market terms similar to those offered to other investors, Tesla said in its Q4 financial report. A framework agreement was also signed between both entities to explore future collaborations in artificial intelligence. Founded in 2023 in Nevada as a non-profit company, xAI quickly changed status in 2024. It gained prominence with Grok, an AI-based conversational agent integrated into the X platform (formerly Twitter) as well as certain infotainment systems in Tesla vehicles. This integration is raising growing questions about Tesla's responsibility for how the technology is used. Grok is at the center of several regulatory investigations. It is accused of facilitating the creation and distribution of explicit deepfakes made from photos of real people, without their consent. The European Commission has opened a formal procedure, followed by authorities in California, Australia, India, Ireland, France, and several Southeast Asian countries, some of which have suspended the service. Tesla's investment is expected to be finalized in Q1 2026, subject to approval by the relevant authorities. © MarketScreener.com - 2026