Elon Musk has become a fat source of news in the last few years, but the tech billionaire has especially been facing one problem after the other more than usual in the last week. Most of them stemmed from his actions, of course, and the latest lawsuit he's facing is one of those instances. Tesla Investors Sue the CEO Elon Musk is the CEO of many tech giants, including ones where he serves as the founder.
With him claiming to be an advocate of creating AI that benefits humanity, he launched xAI which eventually led to the X Premium exclusive feature, Grok AI. Entering the AI race is slowly proving to be more trouble than it's worth. Musk just pulled himself out of a day in court after dropping the lawsuit against OpenAI, but now the investors in his own company are suing him for creating xAI.
As reported in , the tech CEO is being accused of diverting resources and talent from Tesla and directing it to the AI company. This move is considered a breach of fiduciary duty to Tesla. In the lawsuit, Elon Musk's intention to turn Tesla into a robotics and AI company was also mentioned.
It actually helped boost Tesla's popularity and value, making it the top automaker in the market. This just shows why the launch of xAI seems more like a controversial move for the investors of the EV maker. What's worse is that Musk is propping the AI company up using Tesla.
On top of "diverting scarce talent and resources from Tesla to xAI," he is said to have "raised billons of dollars for xAI while.