Elon Musk’s Artificial Intelligence (AI) The start-up, XAI, looks like it has some serious venture capital money behind it with Sequoia Capital committing to invest in the company.
Musk launched xAI in 2023 with plans to work on lofty ideals and existential problems like understanding the nature of the universe.
In his efforts to raise up to $6 billion for his fledgling company, the 52-year-old billionaire has approached investors who previously backed the acquisition of Twitter (now X) in 2022. Latest funding round could mean XAI is valued at $18 billion, report financial Times On Thursday (April 25).
sequoia, Who invested 800 million dollars in Twitterhas confirmed its intention to invest in XAI, although the exact amount has not been disclosed.
Elon Musk’s XAI levels up for the AI race
Sequoia’s support for spacex, Sequoia’s current boss Roelof Botha was hired at PayPal in 2000 by fellow South African Musk.
Musk’s XAI faces intense competition from rival AI companies in this emerging market sector. OpenAI and Anthropic Fellow start-ups are making big waves and there are existing tech giants like Meta (Who announced a significant increase in AI spending this week) and Google.
To keep his company in the race, the The capital investment from Sequoia and other investors will help accelerate the development of XAI’s chatbot, Grok, bringing it closer to the performance of its competitors.
Musk’s involvement in the AI industry is not without controversy. He co-founded OpenAI in 2015 but left its board in 2018 due to disagreements with CEO Sam Altman over the direction of research. Recently, Musk sued OpenAI and Altman, claiming they had compromised the start-up’s core mission of building AI systems for the benefit of humanity, a case which OpenAI dismissed as “frivolous”. Is and demanded to be dismissed.
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