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Elon Musk reportedly on the verge of raising billions for his AI company

Elon Musk reportedly on the verge of raising billions for his AI company

Elon Musk Open AI The competitor is getting ready to raise some big money from Silicon Valley.

According to new, anonymous reports the information And Tech CrunchMusk's AI company xAI is currently raising $6 billion at a pre-money valuation of $18 billion, and the deal is expected to close within weeks.

Musk's 10-month-old AI company is trying to take OpenAI live after Musk openly criticized and clashed with the AI ​​giant for Helped to make.. Musk has long criticized OpenAI's shift in ethos, criticizing the company's shift from an open, non-profit model to a more secretive, profit-seeking approach.

According to reports, Musk and his colleagues are pitching xAI to investors as an AI brand that will one day merge with Musk's various companies such as Tesla, SpaceX, The Boring Company, and Neuralink. TechCrunch reports that the pitch claims that xAI will be different from other AI companies because it will “specialize in the physical world.” The pitch says that one day xAI will train on data from all of Musk's companies and then help Tesla build fully self-driving cars and its (yet-undeveloped) robot Optimus.

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It should come as no surprise if Musk has no problem raising big money from tech venture capitalists. Musk has many friends in Silicon Valley, and although his Fame has recently achieved success.Sympathetic VC firms have. has been a feature for a long time of his support network. As TechCrunch notes, one of the participants in this round of funding is Future Ventures, which was co-founded. Musk's old partner Steve Jurvetson.

However, as xAI gets ready to raise billions, it's important to note that its only real product at the moment. Grok, an AI chatbot integrated into Musk's social media company X, formerly known as Twitter. And, as Mashable and other outlets have reported, Grok is really up to no good. Until recently, an AI chatbot couldn't tell the difference between real news and news a joke, And reported a humorous post as real legitimate news. Grok also recently Made up a false story About Iran hitting Tel Aviv with missiles, which X then broadcast to millions of its subscribers.

But, regardless of Grok's failures, 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, which has seen revenue plummet under Musk's ownership, will benefit from…whatever happens with xAI.

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