HomeTechnologyElon Musk's new company, xAI, wants to raise $6 billion to compete...

Elon Musk’s new company, xAI, wants to raise $6 billion to compete with OpenAI.

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The Financial Times said Morgan Stanley is expected to lead the next investment round.

Elon Musk’s company xAI is trying to get $6 billion from investors around the world to help with its artificial intelligence project, according to the Financial Times.

The company wants to raise money, which could make it worth $20 billion. This would help the company compete with other big companies like Microsoft-backed OpenAI, Anthropic, and Cohere.

Elon Musk is speaking with people who might want to invest in his company.

People who know what’s going on say that Musk is talking to different people who might want to invest with him. This includes wealthy families in Hong Kong, government funds in the Middle East, and other people in Japan and South Korea who are interested.

Elon Musk is being strategic in the places he’s investing in. He’s putting money in different countries, like Hong Kong, even though there are tensions between the US and China.

The fundraising event was announced a few days after Bloomberg said xAI got $500 million in funding. They want to reach a $1 billion investment goal. The very rich business person said the report is not true and gives the wrong idea.

Even though Musk said it wasn’t true, the artificial intelligence company already said it planned to raise $1 billion by selling shares, according to documents filed with the SEC.

There is still not sure if the company has gotten the money it needs. But ongoing talks and a possible $6 billion fundraising show that a lot of money is needed to improve AI models. Creating these tools needs a lot of computer power, big sets of data, and the latest chip technologies.

Morgan Stanley will lead the next investment round.

The American bank helped pay for the $44 billion purchase of Twitter, which is now called X, in 2022.

xAI started in July 2023 when there were a lot of new developments in the artificial intelligence industry. The AI sector has become more popular and people are investing more in it. OpenAI’s ChatGPT and companies like Anthropic and Inflection AI, which are supported by Google and Microsoft, have been very successful in raising money.

To compete with ChatGPT, xAI launched its first product called Grok in November of that year to compete with OpenAI’s success. The tool has a lot of things in common with ChatGPT.

The company started with Elon Musk criticizing competitors for not focusing enough on safety measures and censoring their AI products for no reason. Ever since it started, the billionaire business person has always supported the careful creation of AI.

At that time, Musk quit OpenAI in 2018 because he didn’t agree with the company’s CEO Sam Altman. Then he started a new company called xAI.

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