Ross Gerber Says Putting Musk's Grok AI On Tesla Is A 'Total Conflict' And A 'Huge Negative' For Shareholders

Ross Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management, known for being a Tesla Inc TSLA bull and investor, sees the potential integration of Elon Musk‘s Grok AI chatbot into Tesla vehicles as a drawback for investors.

What Happened: “Putting grok on Tesla is a total conflict,” Gerber said.

In simple terms, if Grok gets integrated into Tesla, Gerber explained that Tesla shareholders won’t own the artificial intelligence operating system (AI OS) on Tesla cars. 

“This is a huge negative for Tesla shareholders if we don't own the AI OS on Tesla and Xai does,” Gerber wrote, referring to the AI company started by Musk.

Instead, Gerber suggests that Tesla should develop a dedicated Large Language Model (LLM) for its cars, leveraging its ample capital and in-house AI team.

Gerber expressed his dissatisfaction with the absence of an LLM on his Tesla screen in a previous post, particularly after Volkswagen showcased its ChatGPT integrated voice assistant at the CES 2024 tech fair.

Why Does This Matter? While Tesla cars currently lack a Large Language Model, Musk has hinted at its imminent introduction. 

In November, Musk mentioned exploring a partnership between Tesla and his AI startup, xAI, which includes integrating the AI chatbot Grok into Tesla cars. 

This idea was proposed by investor Dave Lee, a long-time Tesla investor since 2012, who suggested a collaboration where Tesla makes financial investments and provides DOJO compute resources to xAI. In return, xAI would offer equity and access to its AI chatbot for Tesla.

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