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Ark Invest sees potential in xAI as the world adopts more AI models

Ark’s new stake in xAI bets on Musk’s future plans. Will the newly merged companies deliver the next AI breakthrough?

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Credit: x.AI

Ark Invest reinvested in X Corp in Q1 2025 through its Ark Venture Fund, which converted into a position in xAI, Elon Musk’s artificial intelligence company.

In March, xAI acquired X, intertwining the two companies’ futures. The stock merger values xAI at $80 billion and X at $33 billion. After xAI acquired X, Elon Musk noted that the combined company would unlock “immense potential.” Ark Invest believes in Musk’s vision for xAI and X Corp.

“…the deal created a new combined entity called XAI Holdings Corp., a strategic union that integrates xAI’s cutting-edge foundational models with X’s massive user base of over 600 million strong to unlock a platform that blends real-time communication with AI-enhanced discovery, truth-seeking, and personalized knowledge delivery.

“We believe this merger will be a significant catalyst for consumer AI adoption and foundational model monetization,” Ark noted.

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Musk is reportedly planning a valuation adjustment for xAI. CNBC’s David Faber noted in April that Musk hinted at a new funding round for his artificial intelligence startup during an investor call.

The merger supports Musk’s vision to transform X into an “everything app,” where people can communicate, make monetary transactions, catch up on news, and more. xAI is already working on providing financial services. It recently partnered with TWG Global and Palantir to integrate AI with financial services.

In addition, XAI Holdings also has X Money, a payment system that could rival Venmo, Zelle, and Apple Pay. X Corp. secured a Visa partnership in January and money-transmitter licenses in 42 states, including California, in September 2024.

X Money faces opposition in New York from Manhattan Democrats Assemblymember Micah Lasher and state Sen. Brad Hoylman-Sigal, who sent a letter Monday to the state’s Department of Financial Services, urging rejection of X Corp.’s money-transmitter license. The lawmakers cited Musk’s leadership as a risk to consumer data and financial infrastructure.

Ark’s investment in xAI underscores confidence in its AI-driven future, amplified by the XAI Holdings merger. As xAI leverages X’s platform to scale AI innovation, Ark’s stake positions it to benefit from a transformative shift in consumer AI and fintech, despite ongoing challenges.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla proves once more that its factories are its best product

Tesla’s factories are the company’s biggest products–literally.

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Credit: Tesla China

Tesla’s factories are not just the company’s biggest assets. They are also its best product. This is, at least, as per Tesla China’s recent post on social media platform Weibo.

Tesla China’s Weibo post was shared to celebrate Giga Shanghai’s changeover to the new Model Y, which is currently being delivered to consumers globally.

Tesla’s Best Product

In its post, Tesla China noted that Gigafactory Shanghai was able to complete its new Model Y production ramp up in just six weeks. This is a new record for Tesla, and it speaks to the company’s intense focus on efficiency. Tesla also highlighted the Cybercab’s production line in its Weibo post, stating that the upcoming vehicle will see “ultra-high levels of automation” when it gets produced.

“The factory is Tesla’s best product—Tesla Shanghai Super Factory completed the new Model Y production capacity ramp-up within 6 weeks, setting a record for the company’s fastest model production speed. In the future, the North American factory is expected to roll out a Tesla self-driving electric Cybercab every 5 seconds to subvert the vehicle production and manufacturing model. Adhering to the first principle of car manufacturing is Tesla’s core advantage that is difficult to copy,” Tesla China wrote in its post.

Tesla’s Factories

Tesla’s factories are among the best in the world. Tesla only operates four vehicle factories for its entire vehicle lineup today, which is quite impressive for a company that has so far sold up to 1.8 million vehicles per year. Tesla is expected to improve its factories’ output with its future vehicles as well, with Elon Musk stating during the company’s Q1 2025 All-Hands Meeting that the Cybercab’s factory will look more like a high-speed consumer electronics line than a car production line. These innovations, Musk noted, should allow Tesla to ramp the Cybercab’s production to 2 million units per year. 

Musk highlighted the importance of Tesla’s factories in the first quarter earnings call as well. While discussing the Cybercab’s line, Musk noted that with Tesla, the factory is as much a product as its cars. “The factory is the product as much as the car is the product. So, this really is the first principles approach to manufacturing that will ultimately allow us, I think, to… achieve a cycle time, meaning a unit every five seconds or less, off a single line,” Musk stated.

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Starlink to launch on United Airlines planes by May 15

Select United Airlines passengers will get free Starlink internet, with 200+ Mbps speeds. Early testers streamed MLB & live news with ease.

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(Credit: United Airlines)

Starlink will launch on United Airlines planes by May 15, 2025, providing select passengers with free internet inflight.

Recently, Sean Cudahy from The Points Guy tried out United Airlines’ free Starlink Wi-Fi. The airline invited a few media to try out Starlink Aviation Wi-Fi before its official launch.

According to Cudahy, connecting to Starlink was easy. All he had to do was take out his phone and connect to the Unitedwifi.com network, which took him to a landing page. Once he clicked “get started” on the landing page, it opened the United mobile app on his phone.

The United app verified Cudahy’s status as a MileagePlus member. After that, all he had to do was click on “connect,” and he was all set. Starlink’s speed was reliable and just what passengers would need on a long flight.

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“I ran a speed test, and it clocked the Wi-Fi at 217 Mbps of download speed, and 26.8 Mbps of upload speed,” noted Cudahy.

Cudahy added that connection to Starlink Wi-Fi on his other devices, like his tablet, was easier. All he had to do was scan a QR code on his phone from his tablet.

“United certainly isn’t exaggerating on the speed of the service: I was able to simultaneously watch a live news feed about the selection of a new Pope on one device, and stream a live Major League Baseball game on another,” The Points Guy noted in his review of Starlink Aviation.

United Airlines is offering Starlink services for free to MileagePlus members. Based on Cudahy’s experience, it’s best to download the United mobile app before your flight.

United Airlines expects to equip all 300 of its Embraer 175 planes with Starlink by the end of the year. It plans to install 40 regional jets with Starlink equipment every month.

Last month, the Federal Aviation Administration (FAA) approved United Airlines’ Starlink-equipped planes. United plans to roll out Starlink Wi-Fi across all its flights. It is currently working to receive FAA approval to install Starlink equipment on over 16 aircraft models.

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Starlink Direct to Cell to boost remote businesses in Chile

Entel teams up with Starlink Direct to Cell to power SMEs & industries in Chile’s remote regions. Remote businesses get a major tech upgrade.

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(Credit: SpaceX)

Entel will provide Starlink Direct to Cell services to businesses in Chile and Peru, boosting connectivity in underserved regions.

Entel is Chile’s leading telecommunications provider. Its strategic collaboration leverages Starlink’s Direct to Cell service by offering advanced internet solutions to small and medium-sized enterprises (SMEs) and large corporations.

The partnership targets industries like mining, agriculture, and forestry, which often face connectivity challenges in remote areas. By tapping into Starlink’s low-latency satellite constellation, Entel aims to bridge these gaps, driving innovation and competitiveness.

The collaboration with Entel follows Starlink’s April expansion in Brazil, where its internet was integrated into John Deere’s agricultural equipment. Through its mobile app, Starlink provided Brazilian farmers with live video feeds, sensor data, and real-time sharing.

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Entel’s Starlink Direct to Cell service includes value-added features such as 24/7 network monitoring, proactive management, and dedicated technical support. An observability feature will allow businesses to track real-time connectivity performance through web or mobile applications, enhancing operational efficiency.

The service’s accessibility to SMEs is a key focus. Starlink Direct to Cell is expected to empower small businesses to engage in e-commerce, improve customer communication, and expand digital operations.

Starlink’s Direct to Cell expansion into Peru underscores Entel’s regional ambitions, positioning it as a leader in Latin America’s business connectivity landscape. While details of the Peruvian rollout remain forthcoming, the move aligns with the region’s post-COVID-19 economic recovery. Reliable internet is critical for businesses to adopt cloud-based technologies and access global markets.

Starlink’s growing influence in Latin America highlights its role in transforming connectivity for underserved areas. Entel’s partnership strengthens its portfolio and helps businesses navigate a digital economy. As industries in Chile and Peru leverage Starlink’s capabilities, the collaboration could set a precedent for regional telecom providers, fostering innovation and economic growth across diverse sectors.

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