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Elon Musk’s AI empire grows as xAI leases Palo Alto space near Tesla

The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area.

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Credit: xAI/X

Elon Musk’s artificial intelligence startup, xAI, is expanding its Silicon Valley footprint, leasing roughly 105,000 square feet of office space at Palo Alto’s Page Mill Center, just blocks away from Tesla’s engineering complex.

Musk’s deepening Silicon Valley footprint

People familiar with the matter have informed the San Francisco Business Times that xAI’s lease at Page Mill Center may already have been finalized, adding to the company’s existing headquarters at 1450 Page Mill Road. The two offices share a parking lot, reflecting Musk’s strategy of consolidating his ventures. Tesla’s engineering hub is also just a few blocks away.

The new offices form a growing cluster of Musk-led companies in the heart of the Valley and come as xAI has listed over 250 job openings. These include listings for engineers, designers, and technical staff, among others. 

xAI’s aggressive hiring push hints at rapid scaling, which makes quite a lot of sense considering the company’s ambitious projects. xAI oversees the large language model Grok and other AI initiatives such as the newly launched Grokipedia, and the startup has also acquired the social media platform X. Real estate owner Hudson Pacific Properties, the owners of Page Mill Center, have so far declined to comment.

AI demand and Silicon Valley’s office rebound

Silicon Valley’s office market, long subdued by remote work trends, is seeing renewed activity from AI firms. Hudson Pacific told investors this summer that tenant demand has reached a three-year high, with over half of new leases driven by artificial intelligence companies. Vacancy rates have now fallen for four straight quarters to 16.6% as well, CBRE reported.

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The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area. Musk, after all, has previously butted heads with officials, resulting in his two biggest ventures, electric vehicle maker Tesla and private space company SpaceX, officially relocating their headquarters to Texas.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk shares incredible detail about Tesla Cybercab efficiency

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(Credit: Tesla North America | X)

Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.

ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.

The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.

Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.

ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.

Credit: ARK Invest

This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.

The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.

Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.

Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.

It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

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Elon Musk to attend 2026 World Economic Forum at Davos

The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink.

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Elon Musk planned to attend the World Economic Forum in Davos for the first time, marking a notable shift after years of public criticism of the annual gathering. The Tesla CEO was confirmed as a last-minute speaker for a session alongside BlackRock CEO Larry Fink, signaling a thaw in Musk’s long-strained relationship with the global economic forum. Musk was confirmed as a late addition to Davos program Organizers of the World Economic Forum confirmed that Elon Musk was added shortly before the event to a Thursday afternoon session in Davos, where he was scheduled to speak with Larry Fink. The appearance marked Musk’s first participation in the forum, which annually draws political leaders, business executives, and global media to Switzerland. Musk’s attendance represented a departure from his past stance toward the event. He had been invited in prior years but declined to attend, including in 2024. His Davos appearance followed remarks from his political ally, Donald Trump, who addressed the forum earlier in the week with a wide-ranging speech. The session also underscored Musk’s expanding role beyond Tesla, reflecting his leadership across multiple ventures, including SpaceX and xAI. A previously strained relationship showed signs of easing Musk had frequently criticized the World Economic Forum in the past, describing it as elitist and questioning its influence. In earlier posts, he characterized the gathering as “boring” and accused it of functioning like an unelected global authority. Those remarks contributed to a long-running distance between Musk and WEF organizers. The forum previously said Musk had not been invited since 2015, though that position shifted as his global influence grew. Organizers indicated last year that Musk was welcome amid heightened interest in his political and business activities, including his involvement in efforts to improve government efficiency during Trump’s administration. Musk later stepped away from that role. Despite the past friction, Musk remained central to several global debates, ranging from SpaceX’s provision of satellite internet services in geopolitically sensitive regions to controversy surrounding content generated by xAI’s Grok chatbot. His decision to attend Davos suggested a pragmatic recalibration, even as his relationship with the forum remained complex.

Elon Musk is poised to attend the 2026 World Economic Forum in Davos. The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink, signaling a thaw in Musk’s long-strained relationship with the event.

A late addition

Organizers of the World Economic Forum confirmed that Elon Musk was added shortly before the event to a Thursday afternoon session, where he was scheduled to speak with Fink, as noted in a Bloomberg News report. Musk’s upcoming appearance marks Musk’s first participation in the forum, which annually draws political leaders, business executives, and global media to Davos, Switzerland.

Musk’s attendance represents a departure from his past stance toward the event. He had been invited in prior years but declined to attend, including in 2024. His upcoming appearance followed remarks from his political ally, Donald Trump, who addressed the forum earlier in the week with a wide-ranging speech.

A previously strained relationship

Musk had frequently criticized the World Economic Forum in the past, describing it as elitist and questioning its influence. In earlier posts, he characterized the gathering as “boring” and accused it of functioning like an unelected global authority. Those remarks contributed to a long-running distance between Musk and WEF organizers.

The forum previously said Musk had not been invited since 2015, though that position has since shifted. Organizers indicated last year that Musk was welcome amid heightened interest in his political and business activities, including his involvement in the Trump administration’s Department of Government Efficiency (DOGE). Musk later stepped away from that role.

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Despite his friction with the World Economic Forum, Musk has remained central to several global events, from SpaceX’s provision of satellite internet services in geopolitically sensitive regions through Starlink to the growing use of xAI’s Grok in U.S. government applications.

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Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes

“I really want to put a Ryan in charge of Ryan Air. It is your destiny,” Musk said.

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elon musk ryanair

Tesla CEO Elon Musk trolled budget airline Ryanair on his social media platform X this week following the company’s refusal to adopt Starlink internet on its planes.

Earlier this week, it was reported that Ryanair did not plan to install Starlink internet services on its planes due to its budgetary nature and short flight spans, which are commonly only an hour or so in total duration.

Initially, Musk said installing Starlink on the company’s planes would not impact cost or aerodynamics, but Ryanair responded on its X account, which is comical in nature, by stating that a propaganda it would not fall for was “Wi-Fi on planes.”

Musk responded by asking, “How much would it cost to buy you?” Then followed up with the idea of buying the company and replacing the CEO with someone named Ryan:

Polymarket now states that there is an 8 percent chance that Musk will purchase Ryanair, which would cost Musk roughly $36 billion, based on recent financial data of the public company.

Although the banter has certainly crossed a line, it does not seem as if there is any true reason to believe Musk would purchase the airline. More than anything, it seems like an exercise of who will go further.

Starlink passes 9 million active customers just weeks after hitting 8 million

However, it is worth noting that if something is important enough, Musk will get involved. He bought Twitter a few years ago and then turned it into X, but that issue was much larger than simple banter with a company that does not want to utilize one of the CEO’s products.

In a poll posted yesterday by Musk, asking whether he should buy Ryanair and “restore Ryan as their rightful ruler.” 76.5 percent of respondents said he should, but others believe that the whole idea is just playful dialogue for now.

But it is not ideal to count Musk out, especially if things continue to move in the direction they have been.

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