Elon Musk’s xAI raises $6bn, escalating rivalry with OpenAI

Elon Musk's xAI, a burgeoning force in artificial intelligence, secures a staggering $6 billion in Series B funding, intensifying its rivalry with former ally, OpenAI. Musk, once a supporter of AI, now urges caution, driving his own venture's momentum. With Grok, an AI chat system integrated into X.com, xAI promises innovation. Led by seasoned executives, backed by giants like Sequoia and Andreessen Horowitz, xAI's ambitions soar, its pre-money valuation reaching a formidable $18 billion..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..By Vlad Savov.Elon Musk's artificial intelligence startup xAI has raised $6 billion to accelerate its challenge to his former allies at OpenAI..The Series B round, announced in a blog post on May 26, comes less than a year after xAI's debut and marks one of the bigger investments in the nascent field of developing AI tools. Musk had been an early supporter of artificial intelligence, backing OpenAI before it introduced ChatGPT in late 2022..Read more: Elon Musk's Neuralink knew of brain implant wire issues before human trials.He later withdrew his support from the venture and has advocated caution because of the technology's potential dangers. He was among a large group of industry leaders urging a pause to AI development last year..Musk launched a rival to OpenAI's ChatGPT in November, called Grok, which was trained on and integrated into X.com, the social network formerly known as Twitter. That has so far been the most visible product of xAI's work, which is led by executives with prior experience at Alphabet Inc.'s DeepMind, Microsoft Corp. and Tesla Inc..The company intends to use the funds to bring its first products to market, build advanced infrastructure and accelerate the development of future technologies, it said in the blog..Its pre-money valuation was $18 billion, Musk said in a post on X. Marquee venture capital names including Sequoia Capital and Andreessen Horowitz backed the fundraising, which is one of the largest so far in the industry..Microsoft Corp. has invested about $13 billion in OpenAI, while Amazon.com Inc. put about $4 billion into Anthropic..Read also:.Elon Musk sparks advertiser backlash on X over antisemitic posts🔒 Elon Musk vs. Jeff Bezos: The modern space race heats up🔒 Elon Musk seeks Tesla shareholder approval for $56bn pay package.© 2024 Bloomberg L.P.

Elon Musk’s xAI raises $6bn, escalating rivalry with OpenAI

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