News & Updates
The latest news and updates from companies in the WLTH portfolio.
Elon Musk Fuels SpaceX-Tesla Merger Speculation After Earnings Call
The possibility of a merger between Tesla (NASDAQ: TSLA) and SpaceX gained fresh attention after Tesla's second-quarter earnings call, with Deepwater Management's Gene Munster increasing the odds of a deal taking place in the coming years. In a post on X, Munster said he now sees a 90% chance of a SpaceX-Tesla merger, up from his previous estimate of 80%. He pointed to comments made during Tesla's earnings call, where Elon Musk addressed an analyst's question about combining the two companies instead of dismissing the topic outright. Musk highlighted the growing collaboration between Tesla and SpaceX, particularly through Terafab, a chipmaking venture backed by both companies. He noted that the businesses are working together across multiple areas, reflecting increasing operational overlap. "Obviously, we can't talk about combining companies and that kind of thing on an earnings call. It's got to be done with the appropriate process," Musk said, signaling that any potential merger would require formal corporate and regulatory procedures. Speculation has intensified since SpaceX's June public market debut, which initially pushed the aerospace company's valuation to about $2.6 trillion. Although its valuation has since dropped by roughly $1 trillion amid concerns over pricing and anticipated insider share sales, investors continue to debate whether closer integration with Tesla could unlock additional value. The two Musk-led companies already maintain a significant commercial relationship. SpaceX uses Tesla's battery storage systems to support its artificial intelligence data centers, while Tesla has integrated SpaceX's Grok AI assistant into its vehicles. Tesla has also supplied vehicles to SpaceX, further strengthening ties between the businesses. Musk has previously combined several of his companies. Most recently, xAI was merged into SpaceX before the rocket company's IPO. Tesla also acquired SolarCity in 2016, a transaction that faced shareholder litigation but was ultimately upheld in Musk's favor in 2022. Tesla shares fell nearly 4% in after-hours trading following its second-quarter earnings report, after the electric vehicle maker missed profit expectations and reported negative free cash flow, adding pressure to the stock despite renewed investor interest in a potential merger with SpaceX.
xAI Sues Man for Allegedly Using Grok to Generate AI Child Abuse Deepfakes
xAI Sues Man for Allegedly Using Grok to Generate AI Child Abuse Deepfakes. Source: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons Elon Musk's artificial intelligence company xAI has filed a federal lawsuit against a South Carolina man accused of using its Grok chatbot to generate child sexual abuse material (CSAM) and non-consensual explicit deepfakes, marking one of the first known legal actions by an AI developer against a user over alleged misuse of generative AI. The lawsuit, filed Tuesday in a federal court in Texas, alleges that Terry Harwood violated xAI's terms of service by attempting to create sexually explicit AI-generated images involving both adults and minors. Harwood was arrested in February on separate charges related to the sexual exploitation of minors. His contact information was not immediately available, and xAI has not issued additional public comments on the case. According to the complaint, Harwood uploaded non-sexual images into Grok and allegedly attempted to transform them into explicit AI-generated content without consent. xAI claims the activity included efforts to produce child sexual abuse material and sexually explicit deepfakes of adults. The lawsuit comes as xAI faces growing international scrutiny over concerns that Grok and other generative AI tools can be exploited to create harmful or non-consensual synthetic media. The company said it actively monitors abuse and takes enforcement action against users who violate its policies. Court filings state that xAI has suspended 52,222 user accounts and submitted 73,604 reports to the National Center for Missing & Exploited Children (NCMEC) in 2026. According to the lawsuit, those reports have contributed to at least 244 arrests. xAI is seeking unspecified monetary damages and a permanent court injunction that would prohibit Harwood from accessing or using Grok in the future. In its filing, the company argued that the defendant intentionally weaponized its AI platform for criminal purposes, causing serious harm to victims while exposing xAI to legal and reputational risks. The case could become a landmark legal test of how AI companies hold users accountable for the misuse of generative AI technologies.
Elon Musk Says Anthropic Leads AI Race as Claude Models Challenge OpenAI
Elon Musk Says Anthropic Leads AI Race as Claude Models Challenge OpenAI. Source: Ministério Das Comunicações, CC BY 2.0, via Wikimedia Commons Elon Musk has publicly praised artificial intelligence startup Anthropic, saying the company is "obviously" the current leader in AI, in a rare acknowledgment of a key rival as competition among top AI developers intensifies. Musk made the remark on X while responding to a discussion comparing the performance of leading AI models. Although he did not explain the reasoning behind his assessment, the comment highlights Anthropic's growing influence in the rapidly evolving artificial intelligence industry. Founded in 2021 by former OpenAI executives, including Chief Executive Dario Amodei, Anthropic has become one of the strongest challengers to OpenAI, Google, and Musk's own xAI. The company has built a strong reputation through its Claude family of AI models, which have gained widespread popularity, particularly among software developers and businesses. Anthropic's momentum accelerated after the launch of Claude Opus 4.5 late last year. The advanced AI model earned widespread recognition for its coding performance, attracting software engineers and AI researchers who increasingly adopted Claude over competing AI assistants. The model's strong coding capabilities fueled its rapid growth within the developer community. The company later broadened its reach with the introduction of Claude Cowork, a platform designed to help businesses and non-technical users automate tasks such as research, writing, and workplace productivity. The expansion beyond coding strengthened Anthropic's position in the enterprise AI market and reinforced its status as one of the fastest-growing companies in the sector. Anthropic's rapid growth has also attracted significant investor interest. The company confidentially filed for a U.S. initial public offering in June, shortly after completing a funding round that reportedly valued the AI startup at approximately $965 billion. If completed, the IPO could rank among the largest public listings in the artificial intelligence industry. As competition intensifies among leading AI companies, Musk's endorsement underscores Anthropic's rising prominence in the race to develop next-generation AI models. With continued advances in coding assistants and enterprise productivity tools, Anthropic is increasingly positioning itself as a formidable competitor to OpenAI and other major players in the global AI market.
