As expected, following the news of NVIDIA revealing Elon’s transfer of 12,000 Tesla GPUs to xAI for early use, a group of Tesla shareholders has filed a lawsuit against Elon Musk, the board of directors, and Tesla itself.
This group of shareholders has filed a lawsuit in Delaware court, comparing the situation to if the CEO of Coca-Cola were to open a supplementary beverage company and transfer rare ingredients from Coca-Cola to this new company. They question whether the board of directors should allow such actions.
The lawsuit also references Elon’s own statement that AI is key to Tesla’s future and defines Tesla as an AI company. Therefore, Elon’s decision to open xAI implies competition, as well as diverting resources from Tesla, including GPUs and employees.
Another interesting point is that the Delaware court is the same court that previously overturned Elon Musk’s compensation package in 2018. This court’s decisions may not always be favorable to Elon.
TLDR: Shareholders are suing Elon Musk and Tesla for transferring GPUs to xAI, citing concerns of competition and resource diversion, with the case being heard in a court previously unfavorable to Elon.
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