New Delhi, Jan. 29 -- Tesla has agreed to invest about$2 billion in xAI, Elon Musk's artificial intelligence startup, formalising a deeper financial and strategic link between the electric vehicle maker and Musk's parallel AI venture.

The investment, disclosed in Tesla's fourth-quarter earnings filing, is tied to xAI's $20 billion financing round announced earlier this month. Tesla said the deal was made "on market terms consistent with those previously agreed to by other investors" and is expected to close in Q1 2026, subject to regulatory approvals.

For Tesla, the move reinforces a broader shift: AI is no longer just an internal capability but an external ecosystem play.

Founded in 2023, xAI is best known for Grok, its chatbot and im...