Musk admits xAI ‘not built right’ — weeks after Tesla invested $2 billion
Elon Musk admitted today that xAI, his artificial intelligence venture, “was not built right first time around” and “is being rebuilt from the foundations up.” The admission comes just six weeks after he had Tesla pour $2 billion of shareholder money into the company.
The timing is remarkable. Tesla disclosed the $2 billion xAI investment in its Q4 2025 earnings report on January 28. Days later, SpaceX acquired xAI in a deal valuing the combined entity at $1.25 trillion. Now Musk is telling the world the thing he just sold to his own public and private investors was broken.
