Overview
- Tesla said it agreed on January 16, 2026 to buy Series E preferred shares of xAI for about $2 billion on market terms alongside other investors.
- The share purchase is related to xAI’s recently announced $20 billion Series E round and is expected to close in Q1 2026 subject to customary regulatory conditions.
- Tesla and xAI signed a framework agreement to evaluate potential AI collaborations intended to align Tesla’s physical AI products with xAI’s digital models such as Grok.
- xAI’s Grok faces regulatory probes and feature restrictions in multiple jurisdictions after a release enabled non‑consensual explicit image generation.
- Grok is available in some Tesla vehicle infotainment systems, and xAI data centers have been powered by Tesla Megapack batteries according to prior disclosures.