Elon Musk Shifts Focus to xAI as Grok Reaches 64 Million Users

Elon Musk is dedicating more time to xAI, his artificial intelligence startup, while Tesla (TSLA, Financials) faces growing pressure from its board and shareholders.

At a recent staff meeting, Musk described xAI as focused on building truth-seeking AI, warning of risks if systems are trained to mislead. He outlined projects including a Microsoft (MSFT, Financials) rival called Macrohard and a children's chatbot called Baby Grok.

xAI's flagship product, the Grok chatbot, now has 64 million monthly users. The company, valued at $120 billion, has seen leadership turnover but continues to expand hiring and infrastructure.

Tesla shareholders will vote in November on a proposal to invest in xAI, a move Musk says could shape the automaker's future. The board is also weighing a trillion-dollar compensation package to keep him focused on Tesla.