Tesla's profit fell 61% in the fourth quarter as it struggles to maintain its lead in the electric vehicle market. The company announced a $2 billion investment in Elon Musk's AI firm xAI, despite mixed reactions from shareholders. Additionally, Tesla will stop producing the Model S and Model X to repurpose their factory space for making Optimus robots.

SpaceX is exploring a merger with Tesla and an alternative partnership with xAI, as Elon Musk looks to streamline his business ventures. Discussions are reportedly driven by investor interest in consolidating Musk's companies ahead of a potential IPO.

Elon Musk has been dedicating his time to his AI startup, xAI, instead of focusing on Tesla. Employees reported long hours and the pressure to share biometric data for developing a new chatbot, Ani. Musk balanced work with family visits and gaming breaks.

Elon Musk announced that Tesla shareholders will soon vote on a proposal to invest in his artificial-intelligence startup, xAI. He expressed his desire for Tesla to have made this investment earlier and is now seeking shareholder approval through a vote.

Elon Musk has dedicated himself to his A.I. startup xAI, aiming to rival competitors like OpenAI while presenting ambitious plans for the company. His intensified focus on xAI raises concerns about his involvement in other ventures, particularly as Tesla pushes for a significant pay package to incentivize him.

Walter Isaacson, biographer of Elon Musk, predicts a merger between Tesla and Musk's AI startup xAI, which would enhance Tesla's capabilities in real-world artificial intelligence. This consolidation would leverage extensive datasets from Tesla's autonomous driving and the Optimus robot, aligning with Musk’s vision of integrating his various ventures into a cohesive ecosystem.

OpenAI has poached high-level engineers from Tesla and xAI, including Tesla's VP of Software Engineering David Lau, amid an ongoing feud between Elon Musk and OpenAI. This hiring spree is part of OpenAI's efforts to enhance its infrastructure and accelerate its mission in artificial intelligence. Musk is currently suing OpenAI over its shift to a for-profit model and involvement with Microsoft.

Elon Musk has launched a new AI software company called "Macrohard," aimed at rivaling Microsoft by creating specialized AI agents for coding and generative tasks. This initiative is part of Musk's broader vision for his AI startup, xAI, and is linked to the powerful Colossus supercomputer project. Additionally, Musk's ongoing concerns about his influence at Tesla are highlighted amid discussions of a significant compensation package that could impact his leadership role in the company.

An employee at Elon Musk's xAI accidentally leaked an API key on GitHub, which allowed unauthorized access to private large language models (LLMs) used by xAI for internal data from Musk's companies, including SpaceX and Tesla. Despite GitGuardian alerting xAI about the leak nearly two months prior, the key remained active until the repository was removed shortly after direct notification to the security team. Experts warn that the exposure of these internal models poses significant security risks, potentially allowing malicious actors to manipulate sensitive information.