Dan Ives, Jim Cramer And Sawyer Merritt Back Elon Musk's Plan For Tesla's $5B Investment In Grok Parent xAI
The recent proposal by Elon Musk for Tesla Inc. (NASDAQ:TSLA) to invest $5 billion in Grok parent xAI has garnered support from leading market experts on Wednesday.
What Happened: Wedbush analyst Dan Ives, CNBC’s “Mad Money” host Jim Cramer and popular Tesla investor Sawyer Merritt have expressed their approval of Musk’s proposal. Cramer responded with an emphatic “Of course!” while Ives and Merritt echoed the sentiment with a “Yes.”
In a separate poll on X, Merritt commented that Tesla should spend $5 billion on xAI before the valuation rises further.
Why It Matters: Musk initiated a poll on X, asking if Tesla should invest $5 billion in xAI. Musk stated that this poll was to “test the waters” before Tesla invested in xAI.
xAI, Musk’s artificial intelligence startup, had seen an influx of former Tesla employees. This move stirred up some controversy, with accusations of Musk using Tesla as a talent pool for his other ventures.
In July, Musk’s xAI initiated the training of the Memphis Supercluster with 100,000 Nvidia H100 GPUs. Musk lauded the teams involved in the launch, calling it the “most powerful AI training cluster in the world.”
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