Elon Musk xAI $500 Million Raise Report Decrypt

Elon Musk's xAI has secured $500 million in new funding. Musk is also in a race with OpenAI to bring generative AI to market.

Elon Musk's venture into artificial intelligence, xAI, has recently secured a massive $500 million in new funding, according to a report by Bloomberg. This news comes amid a heated debate over the role of AI in Musk's electric car company.

In December, Musk's AI startup filed with the U.S. Securities and Exchange Commission, intending to raise a whopping $1 billion in funding through an equity offering. Documents revealed that Musk had already secured over $134 million at the time.

The source from Bloomberg indicated that xAI is aiming for a valuation of $15 to $20 billion, although these terms could be subject to change over time. Musk himself has not yet made any comments regarding this latest round of funding.

The race to bring the next generation of generative AI to the market has been heating up ever since the launch of OpenAI's GPT-4 last year. Musk has been in direct competition with the company he co-founded, with xAI claiming that its AI model, Grok, will have "real-time knowledge of the world" thanks to its connection to Twitter.

Musk has been vocal about his concerns regarding the potential dangers of AI, warning that it could pose a threat to humanity by taking control of global computer and weapon systems. He has also predicted that artificial intelligence will eventually replace humans in the workforce, stating that there will come a point where no job is needed, as AI will be able to do everything.

In a recent report by the New York Times, it was revealed that Musk, who is also the CEO of Tesla, threatened to remove his artificial intelligence designs from the company if the board did not grant him more than $80 billion in shares. This latest conflict is just one in a series of controversial incidents involving Musk, including a heated exchange with investors during a New York Times DealBook Summit interview.

Despite these conflicts, Musk's xAI continues to push forward in its quest to develop cutting-edge artificial intelligence technology, with the latest round of funding poised to further advance its position in the market.