Cryptocurrency news

Tesla shareholders filed a lawsuit against Musk because of xAI

Forklog / 14.06.2024 / 13:17
Tesla shareholders filed a lawsuit against Musk because of xAI

Tesla shareholders have sued CEO Elon Musk and the board of directors over the billionaire's decision to found xAI. 

According to the plaintiffs, the startup is a competitor of the company in the field of artificial intelligence, "taking away the talents and resources of the automaker." According to the document, at least 11 Tesla employees left for xAI, and the company provided the latter with access to its AI-related data.

"Musk and members of the Tesla board of directors violated fiduciary duties to protect the interests of shareholders and unfairly enriched the entrepreneur by allowing him to launch a competing company. Musk violated the Tesla code of business ethics by creating and heading xAI, and the board of directors did not prevent this," the lawsuit says.

Shareholders also drew attention to the fact that Musk redirected a significant batch of Nvidia AI processors intended for Tesla to his other company, X. Then Musk admitted that otherwise the chips "would just be in stock."

Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse.

The south extension of Giga Texas is almost complete. This will house 50k H100s for FSD training.

— Elon Musk (@elonmusk) June 4, 2024

The plaintiffs are demanding that Musk give up his stake in xAI and transfer it to Tesla. 

Musk launched the startup in 2023. In April 2024, it became known that the project had raised $6 billion with an estimate of $18 billion. According to marketing materials, Musk plans to collect training data from all of his companies, including Tesla, SpaceX, Boring Company and Neuralink.

On June 13, at the shareholders' meeting, Musk boasted about Tesla's achievements in the field of AI, including software and chip development. 

"In fact, there is no chip from Nvidia or any other company that would be better for our machines. We started from scratch in the development of chips, just as we started from scratch in the development of artificial intelligence software. We have the best AI software in the world and the best AI chip in the world — from scratch," the entrepreneur said (quoted by Decrypt).

Recall, according to Musk, Optimus humanoid robots will bring Tesla's capitalization to $ 25 trillion.

Source
Recently News

© Token Radar 2024. All Rights Reserved.
IMPORTANT DISCLAIMER: All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.