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Elon Musk’s xAI nears close of deal valuing the artificial intelligence start-up at US$24 billion
The start-up, a rival to ChatGPT creator OpenAI, has been marketed to a range of Silicon Valley investors via a pitch deck that touted Musk’s track record at Tesla and SpaceX, Bloomberg News previously reported.
The pitch materials also noted that xAI and its chatbot, Grok, will be able to make use of the high-quality data from X, Musk’s social platform previously called Twitter. Having access to data is crucial for building large language models – the technology that powers AI chatbots – an area where xAI aims to compete with other well-funded businesses such as Microsoft-backed OpenAI.
The deal will give xAI a pre-money valuation of US$18 billion, a metric that does not include dollars raised. The Financial Times previously reported some details of the deal.
On Thursday, Musk spoke in a remote interview at the Viva Technology conference in Paris about xAI’s goal of being “as truth-seeking as possible.”
He criticised other AI models developed by Alphabet’s Google and OpenAI as “pandering” to political correctness. He added that another goal for xAI is to “try to be the funniest AI”.