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flag Tesla to invest $2B in Musk’s xAI startup, boosting AI and robotics efforts.

flag Tesla has agreed to invest $2 billion in Elon Musk’s AI startup xAI as part of a $20 billion funding round, pending regulatory approval and targeting a first-quarter 2026 closing. flag The move, part of Tesla’s shift toward AI-driven autonomy and robotics, strengthens collaboration on self-driving vehicles, humanoid robots like Optimus, and AI infrastructure. flag The investment follows Musk’s 2023 founding of xAI as a rival to OpenAI, now valued at over $113 billion. flag Despite a 46% profit drop and ongoing regulatory scrutiny over xAI’s Grok AI, Tesla’s shares rose 3.4% after hours. flag The deal supports Tesla’s Master Plan Part IV and major projects including a Mississippi data center and Colossus supercomputer, though some analysts question capital allocation amid EV market challenges.

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