Elon Musk’s xAI raises $6 billion

In a recent research report on the latest developments in artificial intelligence, Deutsche Bank analysts noted that “constant improvements to already astonishingly powerful generative AI models show how the technology has quickly become table stakes for industry leader. sector”. They said that the major players in the sector cannot “afford to fall behind in the early stages of the push before market positions are consolidated”.

OpenAI, which unveiled the ChatGPT chatbot in late 2022, has roughly tripled its valuation over the past year or so to $80 billion, with about $13 billion in backing from Microsoft. Anthropic, founded in 2021, has raised about $8 billion, largely from Amazon, and has reached a valuation of about $15 billion. Tech giants like Google and Meta have also invested heavily in their own AI technologies, which are rapidly being incorporated into their product lines.

(The New York Times sued OpenAI and its partner, Microsoft, in December, alleging copyright infringement of news content related to artificial intelligence systems.)

Musk, who also runs Tesla, SpaceX and other businesses, co-founded OpenAI in 2015 but later parted ways with the company because he was disillusioned with its direction and the artificial intelligence industry in general.

In March it sued OpenAI and its CEO, Sam Altman, accusing them of breaching a contract by putting profits and commercial interests in the development of artificial intelligence before the public good. In the same month, Musk released the raw computer code behind the xAI chatbot, an escalation in the heated debate over whether open-sourcing the code of these systems could make them more secure or encourage their misuse.