Elon Musk’s artificial intelligence company, xAI, secured $6 billion in funding to enhance its competitive position against industry leaders like OpenAI and Anthropic. Founded by Musk in July, xAI aims to drive innovation and research in AI development, despite Musk’s expressed concerns about the risks of AI technology.
Elon Musk’s artificial intelligence company, xAI, announced on Sunday that it has raised $6 billion. This funding positions xAI to compete with major players like OpenAI and Anthropic, which have received substantial funding from tech giants Microsoft and Amazon. Founded last July by Musk, xAI has launched a chatbot named Grok, available on Musk’s platform, X.
In a public statement, xAI indicated that the investment will be used for developing new products and research and development initiatives. Musk disclosed on X that the company’s valuation stood at $18 billion, excluding the new capital injection.
Elon Musk, who previously co-founded OpenAI but left in 2018 due to philosophical disagreements, has voiced significant concerns about AI. Frequently labeling AI as a threat to humanity, Musk signed a letter last March calling for a pause on AI development and subsequently sued OpenAI and CEO Sam Altman over prioritizing profits over public welfare. Consistent with his advocacy for open-source AI, Musk released Grok’s source code in March.
Despite his cautionary stance on AI, Musk’s companies continue to integrate AI technologies, like Tesla’s Autopilot. He has issued warnings about AI’s potential risks, including a statement in a 2023 interview where he mentioned it could lead to “civilizational destruction.”
