Elon Musk's xAI in Talks to Raise $10 Billion, Valuing Company at $75 Billion
xAI, Elon Musk's AI company, seeks to raise $10 billion in funding, valuing it at $75 billion, amidst plans to expand AI technologies and infrastructure.
Elliot Kim
Elon Musk's xAI has made a significant breakthrough in the AI race, releasing Grok-3, a leading AI model, in record time. This move has shaken up the fast-moving AI landscape, with Grok-3 currently topping the Chatbot Arena leaderboard and the Grok iOS app sitting at the top of the App Store, just above ChatGPT.
This achievement is all the more impressive considering the short timeframe in which xAI managed to deploy a leading foundational model. According to Andrej Karpathy, Grok-3's "thinking" capabilities are roughly on par with OpenAI's o1, marking an unprecedented timescale to state-of-the-art territory.
Musk's strategy appears to be focused on building a large user base around Grok-3, with plans to introduce ChatGPT-like voice interaction and desktop apps in the near future. Additionally, xAI is exploring the development of an AI gaming studio, although details on this project remain scarce.
In response to Grok-3's success, OpenAI has disclosed that ChatGPT now has 400 million weekly active users, a 33% increase from December. While OpenAI still maintains a significant lead in terms of user base, the question now is whether the company can maintain its product lead before Grok and other competitors catch up.
The AI race is heating up, with significant implications for the tech industry as a whole. As the competition intensifies, it will be interesting to see how the major players adapt and innovate to stay ahead of the curve.
In related news, Meta has cut stock refreshers for employees, while increasing executive bonuses. This move has contributed to growing frustration among the rank and file. Meanwhile, Apple has launched the iPhone 16E, Microsoft has made a quantum computing breakthrough, and Google has started pushing users to the Gemini iOS app.
The tech world has also seen some notable job changes, with Mira Murati announcing her OpenAI rival, Thinking Machines Lab, and Yonghui Wu joining ByteDance to run AI research. Additionally, the cofounders of the Humane AI Pin are heading to HP as part of its $116 million acquisition of the failed hardware startup.
As the AI landscape continues to evolve, it's clear that the stakes are high, and the competition is fierce. One thing is certain – the next few months will be crucial in shaping the future of AI and its applications.
xAI, Elon Musk's AI company, seeks to raise $10 billion in funding, valuing it at $75 billion, amidst plans to expand AI technologies and infrastructure.
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