Tesla (TSLA, Financials) could soon ask its shareholders to approve a potential investment in xAI, Elon Musk's artificial intelligence company, according to a Monday exchange on social platform X. Musk said he does not support a merger between Tesla and xAI but left the door open to closer financial ties between the two entities.

Elon Musk's xAI is preparing to raise more money from investors in a deal that could value the artificial-intelligence company between $170 billion and $200 billion, the Financial Times reported on Friday,

According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.