24.2 C
New York

Elon Musk’s new startup xAI seeks to raise $6 billion to challenge OpenAI

Published:

Investors are showing a growing interest in the competition to improve and advance AI technology, with Elon Musk’s artificial intelligence startup, xAI, currently in discussions to secure up to $6 billion in funding. The startup is reaching out to wealthy funds in the Middle East and family offices in Hong Kong for investments. Additionally, Musk is also engaging with investors in South Korea and Japan as part of this fundraising initiative.

Elon Musk has been vocal about his efforts to develop AI responsibly, with xAI gaining attention when it introduced “Grok,” a chatbot positioned as a rival to OpenAI’s ChatGPT. Musk emphasizes the importance of ensuring AI advancements are safe and beneficial. Recently, he expressed concerns about AI and robotics development at Tesla and emphasized the need for more influence over the company’s decisions by acquiring a significant vote share.

As a background, OpenAI, the company responsible for ChatGPT, was founded in 2015 in San Francisco by Musk, along with other notable individuals. Musk left OpenAI in 2018 due to conflicts with his Tesla business related to AI. In July 2024, Musk stated that xAI aims to “understand the true nature of the universe.” Since departing from OpenAI, Musk has been actively involved in promoting responsible AI innovations through various public engagements and speeches.

Despite market challenges, startups in the AI sector, particularly those involved in innovations like ChatGPT, are currently experiencing a favorable funding environment, indicating promising opportunities for growth and development in this field.

Related articles

Recent articles