Walter Isaacson Predicts Tesla and xAI Merger as Elon Musk Signals Possibility Amid Fannie Mae Talks and AI Training Costs

Industry observers and insiders are discussing the potential merger between Tesla and xAI, two companies led by Elon Musk. Walter Isaacson, author and biographer of Musk, has predicted that a merger between the two is likely, citing Musk's vision of combining real-world AI with chatbot technology. Tesla's AI capabilities, fueled by real-time data from its vehicles, could complement xAI's computational power and training clusters. Elon Musk himself has indicated on CNBC that such a merger is "not out of the question." Additionally, Fannie Mae is reportedly in talks with xAI about potential AI-related collaborations, signaling growing interest in xAI's technology beyond the automotive sector. Analysts suggest that merging Tesla's real-world data with xAI's compute resources could accelerate AI development and further position Tesla as a technology company rather than just an automaker.