What AI Stock is Elon Musk Currently Investing In?

Elon Musk is investing in xAI, a private AI company he founded in 2023 to challenge OpenAI and reshape artificial intelligence. For traders, this is less about traditional valuation metrics and more about market psychology — Musk turns companies into narratives that move billions. Understanding how his capital and control strategies work across companies like Tesla, SpaceX, and now xAI, can help traders spot momentum before the rest of the market catches up.

Want to know the AI stocks I’m trading? Check out my AI penny stocks watchlist!

Read this article because it explores which AI companies Elon Musk is putting his focus and funding behind, from his secretive startup xAI to his views on rivals like OpenAI and Anthropic.

I’ll answer the following questions:

• What AI stock is Elon Musk currently investing in?
• Is xAI a public company or privately held?
• How does xAI compare to OpenAI in terms of funding and vision?
• What public AI companies might align with Musk’s investment strategy?
• Does Elon Musk consider Tesla to be an AI company?
• Are there any AI components in SpaceX that investors should know about?
• How is Musk’s approach to AI investment different from other tech leaders?
• What risks should investors consider when looking at Musk-backed AI ventures?

Let’s get to the content!

Speculated AI Stock Interests of Elon Musk

Elon Musk’s current focus is on xAI, his AI company designed to rival OpenAI. But given how his business ecosystem works, it’s not always a direct investment that gives traders an edge — it’s about understanding the connections. xAI, Tesla, and SpaceX all share talent, infrastructure, and data. Musk has built a private web of companies that support each other’s growth, from data training to R&D to hardware deployment. That means when Musk invests in xAI, he’s often also indirectly leveraging Tesla’s chips, SpaceX’s infrastructure, and X’s user data.

This interconnected strategy makes it tough to pinpoint one stock — instead, traders should follow where Musk funnels resources. When Hotshot.co, an AI video startup, was acquired by xAI, it showed Musk’s intent to expand capabilities, not just chase competitors. This matters for trading because these kinds of acquisitions can spike interest and speculative volume across related sectors. It’s the same pattern I’ve seen for years — when a visionary starts stacking pieces for a big play, the market eventually takes notice.

Potential Investments in Public AI Companies

Get my weekly watchlist, free

Sign up to jump start your trading education!

Send me your weekly watchlist

100% Privacy. I will never spam you!

While xAI is private, traders can still look to public AI companies with direct or indirect exposure to Musk’s ventures. Nvidia is a key one — xAI bought 100,000 Nvidia chips using its $6 billion in fresh capital. That’s a material impact on Nvidia’s order book, and traders who understand this relationship might find opportunities when demand news hits the wires.

Other public companies with AI exposure include AMD, which also supplies chips to xAI; Meta Platforms, which is betting hard on AI assistants; and Microsoft, which backs OpenAI. Musk has taken shots at OpenAI and Microsoft for consolidating too much control, but this rivalry creates speculative opportunities — watch for Musk’s statements and counter-moves as catalysts. I’ve taught my students to track the second-order effects: If Musk criticizes a firm publicly, check which competitors might benefit in the short term from traders shifting attention.

Another angle traders might consider is how Tesla itself could become a proxy for xAI’s performance. As xAI integrates deeper into Tesla vehicles — through voice commands, predictive systems, and data processing — Tesla’s perceived tech moat could grow. It’s not just about selling cars anymore; it’s about owning the AI that drives them. This speculative connection is already influencing how traders price in AI potential within legacy automakers. If you’re looking for more AI-adjacent stocks like this, here’s a list of potential AI 2.0 stock opportunities that could benefit from similar narratives.

Musk’s Views on OpenAI and Competing Firms

Musk’s falling out with OpenAI was more than a personal spat — it highlights the control struggle over how AI models are built and monetized. He’s accused OpenAI of abandoning its nonprofit roots and becoming too aligned with Microsoft. That’s why he launched xAI — to create models that are more “truth-seeking” and less “politically correct,” in his words.

This matters for traders because Musk doesn’t just create tech — he builds narratives. Grok, xAI’s AI chatbot, is marketed as a rebellious alternative to ChatGPT. When he positions his products like this, he draws user attention, media cycles, and speculative flows. I’ve seen penny stocks rally off much less than a Musk soundbite — so when he builds a brand that directly attacks giants like OpenAI, traders should watch for sympathy plays in smaller firms offering alternative models or open-source platforms.

There are also more obvious angles to investing in a Musk soundbite. OpenAI isn’t playing the same game — but that doesn’t rule it out for the future! Be prepared: Check my guide on ChatGPT stock.

More Breaking News

• Will DDD’s Momentum Further Plunge?
• Centrus Energy Shares Soar: What’s Next?
• GMS Stock Surge: A Turning Point?

AI Startups That Align with Musk’s Vision

Besides Hotshot.co, Musk has been linked to AI ventures that extend the Grok ecosystem and xAI’s capabilities. These startups tend to focus on AI-generated content, infrastructure acceleration, or tools that integrate easily with platforms like X and Tesla. The strategic overlap makes sense: xAI is reportedly training its models with data from Musk’s other companies, including Starlink and Tesla’s fleet. That gives startups aligned with his vision a chance to plug into a larger machine.

If you’re a trader, this is your watchlist: look for startups with funding ties to Musk’s investors like Sequoia Capital, Vy Capital, or Valor Equity Partners. Also monitor firms that specialize in AI-generated media, robotics, or autonomous infrastructure. This is how I’ve approached early-stage news for years — follow the capital, the narrative, and the overlaps. When all three line up, you usually find the breakout runners.

To track startups with ties to xAI it’s important to use a powerful trading platform with real-time data.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful day and swing trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Musk’s AI Investment Philosophy

Elon Musk treats AI not as an isolated industry but as a core infrastructure for his entire business empire. His philosophy isn’t about passive returns — it’s about building control systems that drive value across multiple sectors. That’s why xAI feeds into X, Tesla, and even SpaceX’s Starlink operations. It’s all part of what some call “Elon Inc.” — a unified web of businesses driven by shared capital, leadership, and technology.

From a trading perspective, this kind of vision leads to compound catalysts. I’ve taught my students to identify these setups early — when an AI model like Grok gets plugged into an app or car or satellite service, the narrative spreads and volume follows. Musk isn’t chasing short-term revenue. He’s chasing positioning. And when he moves, markets react — not always logically, but predictably for those who understand how hype and headlines drive speculative interest.

What is xAI, and How Does It Compare to OpenAI?

xAI is Elon Musk’s AI startup, founded in 2023 to challenge OpenAI, the firm he helped start and later criticized. It launched Grok, an AI chatbot embedded in X, and it has plans for broader integrations across Musk’s empire. The company’s model is trained on real-time data from X and potentially Tesla and SpaceX, making it different from OpenAI, which trains on a wider but more curated dataset.

Compared to OpenAI and Anthropic, xAI is newer, less established, but aggressively funded — with $12 billion raised in just over a year. That kind of cash burn means it’s not yet profitable, but the market doesn’t care. Just like I’ve seen with speculative stocks — the right backers and the right story can override the numbers. And Musk is betting that tighter integration, faster development, and his branding power will put xAI on the same footing as the biggest AI players.

How Much Funding Has xAI Raised Compared to Competitors Like OpenAI and Anthropic?

xAI has raised $12 billion in under two years, putting it close to Anthropic’s $13.7 billion and behind OpenAI’s $17.9 billion. The latest $6 billion round saw participation from Andreessen Horowitz, Sequoia Capital, BlackRock, Morgan Stanley, and Fidelity. That shows Wall Street’s willingness to back Musk, even without revenue proof — a sign of confidence in narrative over metrics.

This level of funding is important for traders because it affects runway and growth velocity. When I look at companies this early in their development, I pay more attention to how long they can spend and how fast they’re building infrastructure — like xAI’s Memphis supercomputer with 100,000 Nvidia chips. That kind of spending attracts attention and sometimes irrational buying, especially when tied to a high-profile founder like Musk.

Investment Opportunities Related to Musk’s AI Focus

You can’t buy xAI stock directly yet — but you can get exposure through other vehicles. One way is through venture funds like the ARK Venture Fund, which owns private shares of xAI and other AI firms. Another is to trade companies like Nvidia or Tesla, which are actively involved in the buildout of xAI’s infrastructure and integration.

The smarter move for most traders is to follow the ecosystem. That means watching for which suppliers, data partners, or service companies might benefit from xAI’s growth. I’ve built entire trades around second-tier beneficiaries — not the headline name, but the companies getting contracts, supplying parts, or catching the overflow attention. When xAI raised $6 billion, Nvidia’s chip order spike wasn’t just a hardware story — it was a short-term trading trigger.

Some traders are also watching Tesla for its internal AI play — especially its custom Dojo supercomputer. While Nvidia powers xAI’s training, Tesla’s in-house chips aim to optimize real-time AI functions for self-driving. This makes Tesla both a customer and a competitor in the AI hardware space, a dual role that traders shouldn’t ignore. If Dojo works as planned, it could shift some AI reliance in-house, which might affect Nvidia’s role in future projects. Want to see how Tesla’s AI positioning compares to others? Here’s a clear breakdown of the Tesla trade thesis from a trader’s perspective.

How Does Musk’s Approach to AI Differ from Other Major Tech Investors?

Musk’s AI approach is tightly controlled, vertically integrated, and public-facing. Unlike Google or Microsoft, which spread bets across many models and researchers, Musk wants one AI system that talks like him, integrates with his platforms, and serves his goals. That means faster moves, fewer checks, and more risk — which is exactly what excites traders.

Most tech investors diversify, hedge, and avoid the spotlight. Musk does the opposite. He calls out rivals, shifts narratives, and brings drama that can send stocks surging or crashing. I’ve taught thousands of traders how to handle volatility, and Musk is one of the few figures who consistently generates it. Whether it’s through lawsuits, tweets, or tech demos, his moves are trading signals.

Key Takeaways

• Musk’s AI focus is xAI, a private startup rapidly gaining value and backing from major investors.
• xAI integrates with Tesla, X, and SpaceX, forming part of a larger strategy built on cross-company data and infrastructure.
• Public plays like Nvidia and Tesla are better trading vehicles than speculative guesses about xAI’s IPO.
• Musk’s rivalry with OpenAI is part business, part branding — and it can affect sentiment in surprising ways.
• Traders should follow not just the headlines, but the secondary moves — suppliers, venture backers, and affiliated startups often give better risk/reward setups.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

Do you get how Musk’s xAI is affecting the markets? Write “I’ll keep it simple Tim!” in the comments if you picked up on my trading philosophy!

Frequently Asked Questions

When Will xAI Go Public with an IPO?

xAI has no announced IPO date and likely won’t go public soon. It just raised billions privately, and with that much cash on hand, there’s no need to rush. From a trader’s perspective, this means you need to watch related assets — like Nvidia or ARK Venture Fund — for exposure.

Is Tesla Considered an AI Stock?

Yes, Tesla is increasingly viewed as an AI stock because of its full self-driving efforts and robotics ambitions. The company is spending over $5 billion on AI right now, and Musk wants to integrate Tesla with xAI’s systems. That gives it long-term AI appeal — but for traders, it’s still about how those developments translate to short-term catalysts.

Does SpaceX Have Any AI Components that Could be Considered an Investment in AI?

Yes, SpaceX uses AI in its Starlink service and may partner with xAI for customer support automation and more. While you can’t buy SpaceX stock directly, the tie-ins to xAI mean that a bet on Musk’s AI ambitions could also affect SpaceX indirectly — and possibly Tesla as well.

What are the Biggest Risks of Investing in AI Companies Backed by Musk?

The biggest risks include overvaluation, regulatory pressure, and Musk’s attention span. xAI may be worth $50 billion, but it’s only generating $100 million a year. There are lawsuits over data use, SEC scrutiny over past trades, and concerns about AI model transparency. As I always teach — don’t just believe the story. Trade what you can verify, and stay alert when the hype curve starts peaking.

What Do Funding Rounds Tell Us About Innovation and Entrepreneur-Led AI Companies?

Funding rounds give traders real-time information on which AI ventures are attracting serious capital — and who’s backing them. When a startup like xAI raises $6 billion in one round, it signals confidence in both the innovation behind the product and the entrepreneur leading it. The details of who joins these rounds, such as Andreessen Horowitz or Sequoia Capital, often hint at future strategic partnerships or technology integrations.

How Can Traders Use Equities and Portfolios to Bet on AI’s Future?

Traders can gain exposure to AI through public equities like Nvidia, Meta, and Tesla, which are often included in institutional portfolios betting on the technology’s future. Many funds and ETFs now build allocations around AI-related innovation, giving retail traders a way to follow the big money. Watching how portfolios shift over time — especially those managed by groups like BlackRock or Fidelity — can provide clues about where the smartest capital believes long-term AI growth will happen.

What Are Key Considerations Around Neuralink, User Data, and Media Coverage Like the Wall Street Journal?

Neuralink, Musk’s brain-interface venture, isn’t an AI company but shares a data-driven philosophy that echoes across his businesses, including xAI. Some articles — including coverage from the Wall Street Journal — have raised questions about how data from users of platforms like X is used to train AI models. Traders need to pay attention to how this kind of information affects regulatory response, especially in the United States, where growing scrutiny around data privacy and AI usage could influence valuations across the board.