In a recent report, Elon Musk’s artificial intelligence venture, xAI, has successfully raised $500 million in new funding, as reported by Bloomberg on Friday. This funding comes amidst an apparent clash over the role of AI technology at Musk’s electric car company.
In December, Musk’s AI startup officially notified the U.S. Securities and Exchange Commission of its intention to raise $1 billion through an equity offering. At that time, documents revealed that Musk had already secured over $134 million. The current funding round has brought xAI’s total funding to date to substantial levels.
According to a Bloomberg source, xAI is eyeing a valuation between $15 to $20 billion, although these terms might be subject to change over time. Elon Musk, as of now, has not commented on the recent funding raise.
This development occurs amid a competitive landscape in the AI field, particularly after the launch of OpenAI’s GPT-4 last year. Musk has been actively engaged in a race with the company he co-founded to introduce the next generation of generative AI to the market. In the lead-up to the launch of Grok in November, Musk asserted the superiority of his AI model, initially announced in July. xAI claimed that Grok would possess “real-time knowledge of the world,” emphasizing its connectivity to Twitter.
Musk took to Twitter to share, “Tomorrow, [xAI] will release its first AI to a select group. In some important respects, it is the best that currently exists.” However, after the launch of Grok, Musk and OpenAI’s Sam Altman engaged in a public exchange of insults utilizing their respective AI creations.
Despite Musk’s optimism about the potential of AI, he has also expressed caution about its impact on humanity. He warned that AI could pose a threat by gaining control over global computer and weapon systems. In a less ominous prediction, Musk also highlighted that artificial intelligence could eventually replace humans in the workforce, envisioning a future where AI surpasses human capabilities in various tasks.
As xAI secures substantial funding, the dynamics of the AI competition between Musk and other industry players continue to unfold, shaping the future trajectory of artificial intelligence development.
