Elon Musk poised to challenge OpenAI, targets $1bn for his AI startup

Elon Musk's xAI has already amassed $134.7 million and is striving to amass the billion-dollar mark

By
Web Desk
Wednesday, December 06, 2023
Elon Musk announced his new company xAI which he says has the goal to understand the true nature of the universe. —CNBC

Tesla chief Elon Musk's artificial intelligence venture, xAI, is making waves in the AI world, aiming to raise a substantial $1 billion to compete head-on with OpenAI's widely-used ChatGPT technology.

According to recent filings with the US Securities and Exchange Commission, xAI has already amassed $134.7 million and is striving to amass the billion-dollar mark.

The filing indicates Musk's strong commitment to gathering the entire sum, hinting that he might have secured deals to achieve this ambitious target.

Musk recently showcased "Grok," a chatbot similar to ChatGPT, trained on data from X (previously Twitter), which he acquired for $44 billion last year.

Musk initiated xAI in July, recruiting top researchers from OpenAI, Google DeepMind, Tesla, and the University of Toronto. He expressed that the company's goal is to "understand the true nature of the universe."

Since the rise of OpenAI's ChatGPT a year ago, there has been intense competition among tech giants like Microsoft, Google, Meta, and startups such as Anthropic and Stability AI. Earlier this year, OpenAI reportedly secured commitments of an astounding $13 billion from Microsoft.

Musk's fundraising efforts coincide with a tumultuous period at OpenAI, as CEO Sam Altman's return after a brief dismissal has led to delays in the company's anticipated share sale. Reports suggest the sale, valuing OpenAI between $80 and $90 billion, faced hindrances due to internal disruptions.