World's Richest Man Elon Musk Plans To Raise $1 Billion Funding For His AI Startup xAI

Elon Musk's xAI has set its sights on raising $1 billion in funding from equity investors, marking a leap for the tech mogul's latest venture. According to a recent filing with the Securities and Exchange Commission, Musk has already secured $135 million in initial funding, with the promise of more to come.

Musk founded xAI earlier this year to compete with other generative AI companies, notably taking on OpenAI, a venture he co-founded. The new company has introduced its first product, a chatbot named Grok, trained on data sourced from Musk's own social network, X.

Described as a chatbot with a streak and a knack for answering questions with wit, Grok has already piqued the interest of users on X, formerly known as Twitter. Musk announced in November that equity investors in X would claim a 25% stake in xAI. Additionally, users opting for the Premium+ subscription, priced at $16 per month in the US, will gain exclusive access to Grok's unique capabilities.

Musk's foray into AI has not been without controversy, particularly concerning his relationship with OpenAI. The entrepreneur has been an outspoken critic of the company, especially after he severed ties with its board in 2018. Musk's concerns escalated when OpenAI established a for-profit arm the following year, leading him to express doubts about its autonomy, suggesting it was "effectively controlled by Microsoft." Notably, Microsoft has invested $13 billion into OpenAI.

Despite his involvement in advancing AI, Musk remains wary of the technology's potential risks. Earlier this year, he joined a group of researchers and tech leaders in calling for a temporary halt to the training of powerful AI models. Musk's apprehensions about AI dangers surfaced again during the recent tumultuous events at OpenAI, where CEO Sam Altman was briefly ousted and then reinstated. At the DealBook conference, Musk voiced his concerns, expressing a desire to understand the reasons behind Altman's initial removal, suggesting there might be undisclosed dangers associated with AI development.

Elon Musk, 52, already oversees six companies that span diverse industries, including Tesla, SpaceX, X (formerly Twitter), Neuralink, Boring Co., and now xAI.

*Inputs from Bloomberg*