It's no surprise that Musk is leaning into AI — the CEO has spoken about the idea in many of Tesla's earnings calls over the last year. What sets his approach apart, analysts say, is the way he's blending the boundaries between his companies.

The announcement comes just days after Grok generated antisemitic responses and praised Hitler, which were later deleted.

The billionaire entrepreneur said Tesla shareholders would vote on investing in xAI as he seeks to tap his own companies to help fund his artificial-intelligence startup.