xAIthe artificial intelligence startup founded by Elon Musk just 10 months ago, it is harvesting 6 billion dollars in investments to compete with the giant OpenAI. According to a source close to the deal, the deal is expected to close in the next few weeks, leading to a stock market launch worth $18 billion for a quarter of the company's shares. Among investors, too X (ex Twitter)also owned by Musk, which he already implements the Grok AI assistant for Premium users.
xAI challenges OpenAI, Elon Musk's artificial intelligence raises 6 billion dollars in funding
xAI's stated ambition is to “connect the digital and physical worlds”, exploiting the data collected by Musk's various companies. This means that data from should converge in the company's artificial intelligence Tesla for self-driving cars, Neuralink for brain-computer interfaces, space travel and satellite data of SpaceX, but also the social platform X (ex Twitter).
A huge amount of data, which could make X's artificial intelligence particularly effective (although data access and privacy protection remain to be verified). Which is quickly raising the stock price. If, in fact, a few weeks ago xAI was raising 3 billion dollars with a pre-money valuation of 15 billion, it now rises to 6 billion on a valuation of 18 billion dollars for launch. TechCrunch reports that a source said “we received an email that basically said: It's now $6B on $18B, and don't complain because a lot of other people want to come in.”
Everyone wants to invest in xAI artificial intelligence
TechCrunch reports that there are many investors, even if at the moment they do not want to comment on the capital invested. There are Sequoia Capital e Future VenturesMusk's friend's fund Steve Jurvetson. And then other historical investors of Musk such as Valor Equity Partners e Gigafund Of Luke Nosekwho he previously worked with Peter Thiel (co-founder of PayPal, which merged with Musk's X.com payment platform). Many of them are part of the billionaire's inner circle, and have already invested in his other companies such as Tesla and SpaceX in the past.
Elon Musk
Among Musk's companies that have already started investing and using the company's AI, there is X: the social media to which the billionaire has changed its name. Premium users of the platform can use Grok, the AI assistant developed with the xAI model. Musk has ensured that the platform, despite having lost value in the last year, holds a participation in the AI startup which will allow it to take advantage of the growth of the latter. Growth which, according to Musk, will also come because he has made the AI source code open source and available to everyone.
Another company that will be able to take advantage of Grok's AI could be Optimus, Musk's humanoid robot company. Already some rivals, such as Figure, have started testing the use of AI (in this case, that of OpenAI) within humanoid robots. Musk has already told analysts that he will use robots in Tesla's factories by the end of the year. And although the timing seems optimistic (Musk is no stranger to announcing news for Tesla that arrives only years after the set date), investors see great potential in this application.
Challenge between AI (and those who develop them)
xAI wants to propose an alternative to OpenAI, lto a startup with its chatbot ChatGPT broke every growth record. Musk, who had co-founded OpenAI in 2015 and left in 2018 due to differences with the management, in particular with the co-founder and current CEO Sam Altman. Musk demonstrated his differing views by making xAI's code open source. But it also seems clear that he sees enormous economic potential in the development of these models, even though in 2018 he opposed OpenAI's transformation from a non-profit to a for-profit company.
And, at least for now, it seems clear that several investors see the same potential. Especially because, with the data from Tesla and X, SpaceX and Neuralink, the potential seems enormous. It remains to be seen how Musk's startup will be able to exploit it.
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