Join top executives in San Francisco July 11-12 to hear how they are integrating and optimizing their AI investments for success. learn more
Elon Musk is preparing to launch a new artificial intelligence (AI) startup, X.AI, which will compete directly with OpenAI, according to a bombshell report released Friday by The Wall Street Journal.
The story reveals that Musk incorporated X.AI in Nevada last month and approved the sale of 100 million shares of the privately held company. Musk will be the sole director of the new company, according to state filings. His best friend and director of Musk’s family office, Jared Virtual, is that secretary.
Earlier in the day, the Financial Times ran its own story about Musk looking to launch a new AI company. According to the article, Musk is assembling his team of AI researchers and engineers and is expanding recruitment efforts to employees of major AI companies such as DeepMind, which is owned by Alphabet.
According to the Financial Times, Musk is in talks with investors in SpaceX and Tesla about backing his new AI startup. “A lot of people are investing in it…it’s real and they’re excited about it,” a person with direct knowledge of the debate told the Financial Times.
event
transform 2023
Join us July 11-12 in San Francisco. A top executive shares how she integrated and optimized her AI investments and avoided common pitfalls for success.
Register now
The new company’s name reflects Musk’s ambition to create every app named X. announced on twitter last year. Musk recently changed Twitter’s name to his X Corp and moved its legal entity from Delaware to Nevada. X Corp has a parent company named X Holdings Corp.
Musk’s new venture comes as he voices concerns about the potential dangers of artificial intelligence and the need for regulation and oversight. Musk co-founded OpenAI in 2015 with a group of prominent tech entrepreneurs and researchers. Its goal is to create artificial intelligence that benefits humanity without harming or affecting corporate or political agendas.
According to a recent Semafor report, Musk reportedly tried and failed to acquire OpenAI in 2018. Musk then left his OpenAI board of directors, citing a potential conflict of interest with his work at Tesla. Tesla is also developing his AI technology for self-driving cars. Musk also criticizes OpenAI’s pursuit of artificial general intelligence (AGI). This is the ability of a machine to perform any intelligent task that a human can do.
Business Insider reported Tuesday that the Tesla billionaire has purchased about 10,000 graphics processing units (GPUs) for his new AI project. Technology companies typically use GPUs to handle the computational workloads required for new AI technologies.
VentureBeat reached out to OpenAI and Twitter for comment on Musk’s new AI company. I will update this story if I get a reply.
Update 5:48 PT: OpenAI co-founder and CEO Sam Altman responded to the Wall Street Journal report via his Twitter account with a one-word statement: “Concerned.”
Mission of VentureBeat will become a digital town square for technical decision makers to gain knowledge on innovative enterprise technology and trade. Watch the briefing.
