However, Tesla shareholders have expressed concerns about the diversion of resources and talent from Tesla to xAI. Several shareholders have sued Musk over the decision to start xAI, arguing that it is a competing venture that undermines Tesla's interests.
In related news, xAI is training the next generation of Grok models at its Memphis data center, which has been accused of worsening smog with unauthorized turbines. The company hopes to upgrade the data center next year, but will need approval from the Tennessee Valley Authority to do so.