That of Elon Musk OpenAI its competitor is preparing to raise large sums of money from Silicon Valley.
According to new anonymous reports from Information And TechCrunchMusk’s AI company, xAI, is currently raising $6 billion at a pre-money valuation of $18 billion, and the deal is expected to close in a few weeks.
If You’re a Paid X User, Elon Musk Wants His Grok AI to Write Your Messages for You, Report Says
Musk’s ten-month-old AI company is looking to take on OpenAI directly after Musk openly criticized and feuded with the AI giant that he helped create. Musk has long criticized OpenAI’s shift in ethics, criticizing the company’s shift from an open, non-profit model to a more secretive, profit-driven approach.
Reportedly, Musk and his associates pitched xAI to investors as an AI brand that will one day integrate with Musk’s various companies like Tesla, SpaceX, The Boring Company, and Neuralink. TechCrunch reports that the pitch claims that xAI will be different from other AI companies because it will “master the physical world.” The pitch states that one day, xAI will train on data from all of Musk’s companies and can then help Tesla create (yet non-existent) fully autonomous cars and its (still under development) robot Optimus.
Crushable speed of light
It’s no surprise that Musk has no problem raising large sums of money from tech venture capitalists. Musk has many friends in Silicon Valley, and even though his reputation has taken a hit recentlyfriendly venture capitalists have This has been a feature for a long time of his support network. As TechCrunch notes, one of the participants in this funding round is Future Ventures, co-founded by Musk’s former associate Steve Jurvetson.
However, as xAI prepares to raise billions, it’s important to note that its only real product at this point is Grok, the AI chatbot built into Musk’s social media company X, formerly known as Twitter. And, as Mashable and other outlets have reported, Grok isn’t actually that good. Just recently, the AI chatbot couldn’t tell the difference between real news and fake news. a joke, and reported a humorous message as real, legitimate news. Grok also recently made up a false story about Iran hitting Tel Aviv with missiles, which X then promoted to its hundreds of millions of users.
But, regardless of Grok’s failures, Musk is using the hype around xAI to bail out X. According to TechCrunch, , will benefit from… whatever happens with xAI.
