Elon Musk has never liked Tesla being identified as purely a carmaker — and now he could distance the company even further from its automobile heritage with a deal to invest in his AI startup xAI. Why it matters: Musk is proposing that Tesla help back xAI,

Elon Musk clarified on social media that he does not support a merger between Tesla and his artificial intelligence company, xAI.

Investors familiar with the matter told The Wall Street Journal that the rocket company SpaceX has agreed to invest a whopping $2 billion in xAI, the Musk-led firm behind the controversial large language model Grok. This investment makes up almost half of the $5 billion of equity that the AI company raised last month.