Elon Musk’s artificial intelligence venture, xAI, is pursuing a $1 billion equity funding round, as per a recent Securities and Exchange Commission filing. While $135 million has already been raised, details regarding investors remain undisclosed. The initiative, launched earlier this year, aims to rival other AI entities like OpenAI, a company co-founded by Musk.
xAI’s primary product, Grok, a chatbot trained on data from Musk’s social network, X, is designed to offer witty responses and possesses a rebellious streak, as per the company’s website. Musk has announced that equity investors in X, previously known as Twitter, will hold a 25% stake in xAI. Additionally, users subscribing to Premium+, starting at $16 per month in the US, will gain access to Grok.
Musk, critical of OpenAI since his departure from its board in 2018, particularly after its for-profit arm creation, has expressed concerns about its autonomy, believing it to be “effectively controlled by Microsoft.” Despite his involvement in AI, Musk has advocated for a pause in training powerful AI models, aligning with a call from industry leaders earlier this year.
During the upheaval surrounding OpenAI’s CEO, Sam Altman, Musk questioned the circumstances, emphasizing the importance of any potential risks associated with AI. Amid overseeing multiple companies, including Tesla, SpaceX, and Neuralink, Musk’s xAI seeks substantial funding to compete in the evolving AI landscape.
