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Tesla investors sue Elon Musk for launching a rival AI company
xAI is now the subject of a new lawsuit.
In a lawsuit, the shareholders allege that Musk and the board breached their fiduciary duty to Tesla by launching xAI, which was founded in 2023 on the premise of understanding “the true nature of the universe.” The plaintiffs also cite a recent CNBCreport about Musk ordering thousands of Nvidia-made AI chips destined for Tesla to be diverted to the social media company. In a post on X after CNBC’s story published, Musk said that Tesla lacked the capacity to accept the Nvidia GPUs because the company’s factory in Austin, Texas, is incomplete.
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