Elon Musk Nearing Billions in Funding for His AI Venture

 

Elon Musk’s xAI, a competitor to OpenAI, is poised to secure substantial funding from Silicon Valley.

According to recent reports from The Information and TechCrunch, Musk’s AI endeavor is in the process of raising $6 billion at an $18 billion pre-money valuation, with the deal expected to finalize within weeks.

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If you’re a paying X user, Elon Musk wants his Grok AI to write your posts for you, report says

 

Musk’s ten-month-old AI initiative aims to directly challenge OpenAI, with Musk having openly criticized and feuded with the AI giant he helped establish. Musk has voiced discontent over OpenAI’s shift from an open, nonprofit model to a more secretive, profit-driven approach.

Reports indicate that Musk and his associates have been pitching xAI to investors as an AI brand poised to integrate with Musk’s various ventures such as Tesla, SpaceX, The Boring Company, and Neuralink. According to TechCrunch, the pitch emphasizes xAI’s unique capability to “master the physical world,” foreseeing a future where xAI leverages data from Musk’s companies to assist Tesla in developing full self-driving cars and its robot project, Optimus.

Given Musk’s extensive connections in Silicon Valley, it’s expected that he’ll have little trouble securing significant funding from tech venture capitalists. Despite recent controversies, sympathetic VC firms have long been part of Musk’s support network. Notably, Future Ventures, co-founded by Musk’s former associate Steve Jurvetson, is among the participants in this funding round.

However, as xAI gears up to raise billions, it’s worth noting that its primary product, Grok, an AI chatbot integrated into Musk’s social media platform X (formerly Twitter), has faced criticism. Grok’s performance has been lackluster, as evidenced by its inability to distinguish between real news and satire. Moreover, Grok’s dissemination of false information, such as a fabricated story about Iran striking Tel Aviv with missiles, raises concerns.

Despite Grok’s shortcomings, Musk is leveraging the hype surrounding xAI to potentially benefit X. TechCrunch reports that X holds a stake in xAI, suggesting that Musk’s social media company, which has seen declining revenue under his leadership, stands to gain from xAI’s success.


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