xAI

xAI, Elon Musk’s AI venture, is reportedly securing $15 billion in funding, pointing to strong investor interest despite Musk’s initial denial. This follows a previous $10 billion round valuing xAI at $200 billion, with funds mainly intended for GPUs. AI startup valuations are soaring, but xAI faces scrutiny regarding the environmental impact of its data centers and inaccurate information generated by Grok and Grokipedia. xAI acquired X for $33 billion, and Tesla integrates Grok while xAI invests in Tesla’s battery storage, indicating a complex ecosystem.

Tesla shareholders approved Elon Musk’s compensation package, potentially worth nearly $1 trillion, awarding stock options tied to ambitious performance goals, including market capitalization and profitability targets. The vote also addressed Tesla’s potential investment in xAI, but next steps are under deliberation. Despite opposition from advisory firms, the board actively campaigned for approval, emphasizing Musk’s crucial role. The plan lacks restrictions on Musk’s political activities or time commitment to Tesla, despite ongoing debate regarding his controversial statements on sales. A Delaware court ruling on a previous pay package adds further complexity.

xAI, Elon Musk’s AI company, has launched Grokipedia, an AI-driven encyclopedia challenging Wikipedia. Powered by the Grok AI model, it aims to be a less biased resource. The initial launch faced technical difficulties but is now accessible with over 885,000 articles. Unlike Wikipedia’s volunteer-based content creation, Grokipedia’s content is AI-generated, raising questions about accuracy and sourcing. While Musk touts Grokipedia as an “anti-woke” alternative, its reliance on Wikipedia as a source has been noted. Wikipedia’s co-founders have expressed skepticism and criticism, highlighting the challenges of AI-generated knowledge.

Reports suggest xAI, Elon Musk’s AI startup, is in talks to raise $10 billion, potentially valuing the company at $200 billion, amidst a competitive AI landscape with soaring valuations for OpenAI and Anthropic. However, Musk has denied these reports as “fake news,” disputing the immediate capital raise. xAI’s Grok chatbot has faced controversy, trailing behind competitors in capabilities. xAI merged with X in an all-stock transaction and is investing heavily in AI infrastructure, including acquiring 1 million AI chips and building a large AI computer cluster in Memphis. Musk opposes a merger between xAI and Tesla.

Elon Musk’s X and xAI have sued Apple and OpenAI, alleging an AI monopoly stemming from their exclusive ChatGPT integration into iPhones. The lawsuit claims this partnership locks out competitors like xAI’s Grok, hindering innovation and consumer choice by granting OpenAI unmatched data access and reinforcing its market dominance. They argue Apple uses the deal to counter the threat of “super apps” and unfairly disadvantages competing AI apps in the App Store, harming consumers. X and xAI seek to dismantle the alleged arrangement and recover billions in damages.

Elon Musk’s xAI filed a trademark application for “Macrohard,” sparking speculation of a rivalry with Microsoft. This follows Musk’s July announcement of a multi-agent AI software company powered by Grok, designed to tackle “macro” and “hard” problems. The name “Macrohard,” seemingly a jab at Microsoft, adds fuel to the existing tension between Musk and Bill Gates, marked by public disagreements on Tesla stock and other criticisms. The trademark suggests Musk is seriously pursuing this venture.