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Elon Musk's xAI Startup Nears $6 Billion Funding

Chrissie Wong

Chrissie Wong

26 April 2024

Elon Musk's artificial intelligence startup xAI is raising $6 billion on a pre-money valuation of $18 billion. The deal is expected to finalize soon, with investors such as Sequoia Capital and Future Ventures participating.

Musk intends to integrate training data from his companies, including Tesla, SpaceX, and Neuralink, to bridge the digital and physical worlds. xAI's chatbot Grok has already been integrated into Musk's social media platform X.

However, Musk's efforts may have implications for OpenAI, with Musk openly criticizing the organization and suing them for not sharing their 'secret sauce.' The move to open source xAI's chatbot architecture is part of Musk's campaign to differentiate his efforts from OpenAI.

Overall, Musk's xAI is on track to secure significant funding and potentially disrupt the AI landscape, with ambitious plans to integrate AI across various industries, including self-driving cars and humanoid robots.