Elon Musk orders Tesla shift to xAI’s Grok; engineers asked to email feedback
Elon Musk has mandated that Tesla employees transition to using xAI's Grok AI model for development tasks. This move follows a company-wide cap on spending for third-party AI tools like OpenAI and Anthropic.
Why it matters
The shift reflects Musk's strategy to consolidate his companies' technological ecosystems and reduce reliance on external AI providers.
Elon Musk told Tesla staff to start using Grok, the AI model from SpaceXAI. According to a report by The Information, Musk sent a memo to employees on July 10 telling them to switch to Grok "when possible," citing Grok 4.5's lower token costs compared to rival models. In the memo, he also asked engineers to email him directly sharing feedback on the model if they see any issue. The move comes just days after Tesla capped employee spending on other AI tools.The memo follows a new company rule introduced earlier this month that limits employees to $200 a week in AI spending. That cap covers models from Anthropic, OpenAI and Google. It does not apply to xAI's Grok.Tesla has tested beta versions of Grok internally for months. SpaceXAI product lead Andrew Milich has worked with Tesla staff to fix issues during that testing.
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