Tesla has invested 2 billion in xAI. The company said the deal aligns with its long-term push to bring artificial intelligence into physical products.
The investment forms part of xAIs 20 billion Series E round. The round values the company at about 230 billion. The deal is expected to close in the first quarter of 2026. It remains subject to regulatory approvals. The round includes other major backers. These include Nvidia, Cisco, Fidelity, and Qatars sovereign wealth fund. Their participation signals broad confidence in xAIs long-term plans.
Tesla said the share purchase was made on the same terms as other investors. The company also entered a new framework agreement with xAI. The goal is to explore joint AI projects and expand technical cooperation.
