Competitors to Elon Musk's OpenAI are preparing to raise significant funding from Silicon Valley.
According to a new report from anonymous sources: information and tech crunchMusk's AI company xAI has now raised $6 billion at a pre-money valuation of $18 billion, with the deal expected to close within weeks.
If you're a paying user of X, Elon Musk wants Grok AI to write posts for you, says report
Musk's 10-month-old AI company is directly acquiring OpenAI after Musk publicly criticized and feuded with the giant AI company he helped found. Musk has long railed against OpenAI's change in spirit, criticizing the company's shift from an open, nonprofit model to a more secretive, for-profit approach.
Musk and his associates are reportedly pitching xAI to investors as an AI brand that will one day integrate with Musk's various companies, including Tesla, SpaceX, The Boring Company and Neuralink. TechCrunch reports that the pitch claims that xAI is different from other AI companies because it “dominates the physical world.” The pitch is that one day, he says, xAI will be trained with data from all of Musk's companies and be able to help Tesla develop its (yet-to-be non-existent) fully self-driving car and its (still-in-development) robot Optimus. It says that it will be.
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It's no surprise that Musk has no problem raising large sums of money from high-tech venture capitalists. Musk has many friends in Silicon Valley, and sympathetic VC firms have long been a feature of his support network, even as his reputation has suffered in recent years. As TechCrunch points out, one of the participants in this funding round is Future Ventures, which was co-founded by Musk's old colleague Steve Jurvetson.
However, as xAI gears up to raise billions of dollars, it's important to note that its only real products at the moment are: Grok, the AI chatbot was integrated into Musk's social media company X (formerly known as Twitter). And, as Mashable and other news outlets have reported, Grok isn't actually very good. Just recently, AI chatbots can no longer tell the difference between real news and real news. joke, And they reported the humorous posts as actual, legitimate news.Grok recently too made up a false story About Iran attacking Tel Aviv with a missile and X promoting it to hundreds of millions of users.
But regardless of Grok's failure, Musk is using the hype surrounding xAI to bail out X. According to TechCrunch, X owns a stake in xAI, so the social media company whose revenue has fallen off a cliff under Musk's ownership will… benefit from whatever happens with xAI. .
