2026 Predictions: Tesla Will Acquire xAI

As almost everyone in Silicon Valley has found out lately, creating AI is a money drain, and many of the biggest startups eager to do so aren’t profitable. That’s true even for the AI business run by the world’s richest man, and that’s why I expect Elon Musk will take a drastic step next year to keep the money flowing to xAI: by selling to the profitable part of his empire, Tesla.