What is xAI, the new company created by Musk to compete with OpenAI?
xAI, Musk’s new company to compete with the likes of OpenAI, has received a capital injection of $6 billion, putting its value at $18 billion.
Elon Musk is seeking to lead the Artificial Intelligence (AI) industry. For this reason, and with the aim of doing battle with OpenAI, one of the largest companies in the industry who he helped co-found, the Tesla magnate has launched xAI, a new company focused on the development of Artificial Intelligence.
Since the company is relatively new, its creation was announced last year, there are not enough public previews, other than the creation of Grok, the virtual chatbot for his social media platform X, formerly Twitter. However, xAI is already positioned as one of the most promising companies in the industry, since, in recent days, Musk’s startup received a capital injection of $6 billions; placing its value at $18 billion.
Investors include Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding to name a few.
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According to the company’s official announcement, the capital injection will be used to bring xAI’s “first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.” Likewise, the statement emphasizes that the company’s mission is and will be “understand the true nature of the universe.”
For its part, REUTERS reported that, among xAI’s plans, is the development of a supercomputer called “Gigafactory of Compute”. If the vision comes to fruition, its computer would be one of the world’s largest in its field.
The technology billionaire has said that he wants the proposed massive supercomputer up and running by the fall of 2025. Compared to the biggest existing GPU clusters, Musk told investors that it would be at least four times bigger upon completion. It would consist of clusters of Nvidia’s flagship H100 chips which currently dominate the AI chip market.