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  • Writer's pictureSarah Ruivivar

Elon's xAI Eyes £1bn Equity to Outpace AI Rivals

📸 ModelProp / Midjourney

In the thrilling race to rule the artificial intelligence (AI) realm, Elon Musk's startup, xAI, is gunning for a £1bn equity boost.

The world's wealthiest man is determined to keep stride with formidable competitors like OpenAI, Microsoft, and Google.

xAI has already secured a cool £107m from investors and is now eyeing a total of £1bn in equity financing, as per a filing with the US Securities and Exchange Commission. However, Musk took to Twitter to clarify, "We are not raising money right now."

The AI landscape has been buzzing since the launch of OpenAI's ChatGPT last year. This chatbot, which can generate convincing text, image, and audio from simple prompts, has sparked a fierce battle among Silicon Valley's tech titans. Microsoft, for instance, deepened its partnership with OpenAI this January, backing it with a staggering $10bn investment.

Musk, who helms Tesla and SpaceX and owns the X platform (formerly Twitter), co-founded OpenAI in 2015 but exited three years later. In July, he launched xAI and recently unveiled its first AI model, Grok, a chatbot with a "rebellious streak." Grok will be accessible to select premium subscribers on X. Musk also disclosed that X's investors would own 25% of xAI.

Despite his AI ventures, Musk has voiced concerns about AI, branding it as a potential "threat to humanity."

The AI race has also attracted Amazon, which announced a hefty $4bn investment in Anthropic, an AI startup that developed the generative AI chatbot, Claude. Anthropic, backed by a $300m investment from Google last year, is a key rival to OpenAI in the rapidly growing AI sector. It plans to train its models on Google's chips and utilise its cloud services.

In the thrilling world of AI, it's clear that the race is far from over. With Musk's xAI seeking a significant equity boost, we're all set for an exciting showdown among these AI heavyweights.

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