Tesla investing in xAI ‘makes sense,’ analyst outlines
July 24, 2024
Lackluster earnings results from Tesla (TSLA) and Alphabet (GOOG, GOOGL) sent markets under pressure in Wednesday's trading session. Deepwater Asset Management managing partner Doug Clinton joins Market Domination to discuss both companies and their trajectories. Tesla may be investing $5 billion in xAI, CEO Elon Musk's artificial intelligence startup. Clinton believes that the move "makes sense," adding: "What sets xAI apart as a large language model competitor is their ability to think about the physical world from all the things that Elon does at SpaceX, at Tesla. So I think there's synergies there that could be interesting." He believes that the technology being developed at xAI could really benefit Tesla, and the EV company could invest even more to get more value down the road. On the Google front, Clinton says, "we're sticking with it even though it's been volatile today." While some investors were worried about the tech giant's capital expenditures (CapEx), Clinton explains that he's not concerned. He believes that its investments in AI are worth it, explaining that if a tech company walks away from the technology, "everyone else continues and they get it right." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl Read More...
Lackluster earnings results from Tesla (TSLA) and Alphabet (GOOG, GOOGL) sent markets under pressure in Wednesday’s trading session. Deepwater Asset Management managing partner Doug Clinton joins Market Domination to discuss both companies and their trajectories.
Tesla may be investing $5 billion in xAI, CEO Elon Musk’s artificial intelligence startup. Clinton believes that the move “makes sense,” adding: “What sets xAI apart as a large language model competitor is their ability to think about the physical world from all the things that Elon does at SpaceX, at Tesla. So I think there’s synergies there that could be interesting.” He believes that the technology being developed at xAI could really benefit Tesla, and the EV company could invest even more to get more value down the road.
On the Google front, Clinton says, “we’re sticking with it even though it’s been volatile today.” While some investors were worried about the tech giant’s capital expenditures (CapEx), Clinton explains that he’s not concerned. He believes that its investments in AI are worth it, explaining that if a tech company walks away from the technology, “everyone else continues and they get it right.”
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
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