At a recent company meeting in San Francisco, Elon Musk told employees at AI firm xAI (PC:XAIIQ) that the company’s success depends on making it through the next two to three years, according to Business Insider. He said that if xAI can survive this critical period, it has a good chance of beating its competitors in artificial intelligence. To do that, xAI needs to quickly expand its computing power and data systems so it can develop artificial general intelligence (AGI), which refers to AI that can think and reason like a human.
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Musk said that xAI could reach AGI as early as 2026 and pointed to the upcoming Grok 5 model, which he once said has a 10% chance of hitting that goal. He also believes that xAI has a big advantage because it could receive $20-$30 billion a year in funding and benefit from his other companies. For example, Tesla (TSLA) has already added Grok into its cars, and Musk talked about future space-based data centers possibly run by Tesla’s Optimus robots.
In addition, xAI is growing its “Colossus” project from 200,000 GPUs to a planned one million. Leaders also shared updates on products like Grok Voice, a tool for Tesla owners, and new AI assistants that can help with things like video editing, voice recognition, and predicting outcomes. Even though xAI is newer than companies like OpenAI (PC:OPAIQ) or Google (GOOGL), Musk sounded upbeat and confident.
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $383.83 per share implies 21.4% downside risk.
