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Elon Musk Restructures xAI Amid $2B Tesla Investment

3/14/2026

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Story summary
  • Elon Musk, who leads the AI startup xAI, restructures the company after co-founders Jimmy Ba and Zihang Dai depart.
  • Tesla invested $2 billion, linked to a $20 billion funding round.
  • Vinod Khosla stepped in to support OpenAI after Musk hesitated on a $1 billion pledge, citing Musk's desire for control.
  • Khosla's investment has yielded substantial returns as OpenAI's valuation fluctuates between $730 million and $840 million.