Predictions
Art by Clark Miller2026 Predictions: Tesla Will Acquire xAI
xAI needs cash. Tesla has billions. It makes sense for Elon Musk to combine the two.
As almost everyone in Silicon Valley has found out lately, creating AI is a money drain, and many of the biggest startups eager to do so aren’t profitable. That’s true even for the AI business run by the world’s richest man, and that’s why I expect Elon Musk will take a drastic step next year to keep the money flowing to xAI: by selling to the profitable part of his empire, Tesla.