Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk says that the EV giant is working closely with the billionaire's AI venture xAI, which works on the AI model Grok.

What Happened: "Tesla works closely with xAI," Musk said at an interview with Y Combinator on Thursday. The billionaire also highlighted the increasing number of humanoid robot startups currently working on robotics.

"Part of what I have been fighting and what has slowed me down a little bit is that I don't want to make Terminator real," Musk said before adding that he had been dragging his feet on AI. However, he also outlined that Robotics is continuing to grow today.

"I sort of came to the realization that it’s happening whether I do it or not. So you can either be a spectator or a participant. I’d rather be a participant," he said. Musk also shared that it's "pedal to the metal" for him and his companies on AI and humanoid robotics.

Why It Matters: The comments from Musk come in as xAI faces scrutiny over its $33 billion acquisition of social media platform X, formerly Twitter, from authorities in the EU. The platform could also be banned in the region.

Musk has been a vocal advocate for humanoid robots, stating that the technology will impact countries' GDPs within the next 4 to 5 years.

Elsewhere, Tesla is gearing up to launch its highly anticipated Robotaxi in Austin on June 22. However, some Texas lawmakers have urged Musk’s company to delay the launch, citing changes to regulations that will take effect from September 2025.

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