Elon Musk has ruled out a merger between Tesla and his artificial intelligence startup xAI. The Tesla CEO made this clear in a post on X, responding with a simple “No” when asked about investor support for combining the companies.

The statement comes as Musk announced that Tesla shareholders will vote on whether the electric vehicle maker can invest in xAI. This decision follows reports that SpaceX has committed $2 billion to xAI as part of a $5 billion equity funding round.

xAI owns the Grok chatbot, which competes directly with OpenAI’s ChatGPT. The company was valued at up to $200 billion in recent funding discussions, according to sources who spoke to Reuters in June.

Musk had previously said “it would be great” if Tesla could invest in xAI. He clarified that Tesla would already be supporting the AI startup if the decision was his alone to make.

The Tesla CEO ran a public poll on X last year asking if Tesla should invest $5 billion in xAI. At the time, he emphasized that any final decision would require approval from Tesla’s board and shareholders.

xAI acquired X, formerly known as Twitter, in a $33 billion deal in March this year. The combined group was valued at $80 billion at the time of the acquisition.

Despite ruling out a merger, Musk has outlined plans for deeper integration between his companies. Tesla will integrate Grok into its vehicles, bringing the AI assistant directly to drivers and passengers.

The integration extends beyond vehicles to Tesla’s robotics division. Musk plans to power Tesla’s Optimus robots with xAI’s artificial intelligence technology.

These moves reflect Musk’s broader vision of connecting his companies through shared technologies. The strategy aims to establish deeper connections between Tesla and xAI without formal corporate combination.

Tesla stock has maintained a neutral stance on Wall Street. Analysts have assigned the company a Hold consensus rating based on recent evaluations.

In the last three months, Tesla received 13 Buy ratings, 13 Hold ratings, and nine Sell ratings from analysts. The average price target sits at $293.38, suggesting potential downside of over 6% from current levels.

The overlapping ownership between Musk’s companies raises questions about corporate governance and resource allocation. These concerns are particularly relevant for Tesla’s public shareholders as the company faces slowing electric vehicle sales.

Some Tesla investors have been pushing for strategic shifts as the company navigates market challenges. The potential xAI investment represents one possible direction for diversification.

SpaceX’s $2 billion commitment to xAI marks the first known backing of Musk’s AI startup by another of his companies. This investment is part of a larger $5 billion equity round for xAI.