Elon Musk wants to fund $1.44 billion for xAI, his artificial intelligence startup. Put another way, the billionaire behind SpaceX, Tesla, and X is looking to raise $1 billion for his next project.
Musk has raised approximately $135 million from four anonymous investors, according to an SEC filing; the initial transaction took place on November 29. That indicates that he has to raise an additional $865 million to reach his $1 billion target.
As Musk’s response to OpenAI’s ChatGPT, Google’s Bard, or Anthropic’s Claude, xAI is now developing Grok. According to its website, Grok will respond to “spicy” questions that other AI bots avoid and will have a “rebellious streak.” Though it has only been in development for two months, X Premium+ users will reportedly be able to access the product in beta soon. What sets the bot apart even more is its intention to update with real-time knowledge that is shared on X. However, in order for this functionality to differentiate Grok from its competitors, it must possess the intelligence to differentiate between factual news about X and false information.
Musk was a co-founder of OpenAI but left the board in 2018. Since then, Musk has been critical of OpenAI, particularly after the company sacked CEO Sam Altman and then brought him back, creating widespread misunderstanding and anxiety in the AI community.
Raising an additional $865 million is no easy task, but as one of the most influential figures in technology, Musk is undoubtedly up for the challenge—that is, if his (mis)management of X hasn’t turned off potential investors.