Artificial Intelligence: xAI, The Musk-Owned AI Startup, To Raise $1B

xAI is seeking to close the gap with rivals such as OpenAI and Anthropic.

Elon Musk’s artificial intelligence startup, xAI, aims to secure $1 billion in equity financing to compete with industry leaders such as OpenAI, Microsoft, and Google. The company, co-founded by Musk, has already garnered $135 million from investors, as revealed in a filing with the US Securities and Exchange Commission.

The escalating race in developing generative AI, capable of producing convincing text, images, and audio from simple prompts, intensified following the release of OpenAI’s ChatGPT in November. Musk’s xAI, launched in July, recently unveiled its first AI model, a rebellious chatbot named Grok, which will be available to select premium subscribers on the X platform.

Musk, acknowledging the potential threats of AI, noted that platform investors would own 25% of xAI. (The Guardian)

Competitors in the AI sector include Amazon (NASDAQ: AMZN), which pledged up to $4 billion in investment in Anthropic, a startup with its generative AI chatbot called Claude. Anthropic, a rival to OpenAI, received a $300 million investment from Google (NASDAQ: GOOGL) last year and utilizes Google’s chips and cloud services.

In a parallel development, Inflection AI, a Silicon Valley-based competitor, secured $1.3 billion in funding led by Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) in June. As the quest for AI dominance continues, major players are deepening their commitments, signaling the dynamic evolution of the burgeoning AI sector.

Related Story:  Elon Musk’s xAI Launches The ‘Grok’ Chatbot

Image by Gerd Altmann from Pixabay

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