Elon Musk’s xAI is positioning itself as a major player in AI, competing with OpenAI’s ChatGPT, Google’s Bard and Anthropic’s Claude||Wcamp9|CC BY 4.0

Elon Musk’s artificial intelligence (AI) company, xAI, is set to raise up to $6 billion at a $50 billion valuation, according to CNBC. The funding, expected to close early next week, includes $5 billion from sovereign wealth funds in the Middle East and $1 billion from other investors.

The funds will be used to acquire 100,000 Nvidia chips for a new supercomputer, which will play a pivotal role in Tesla’s Full Self Driving technology.

Launched in July 2023, xAI’s mission is to understand the universe’s true nature. The company debuted Grok, a chatbot modeled after The Hitchhiker’s Guide to the Galaxy, which provides real-time internet knowledge. 

xAI is positioning itself as a major player in AI, competing with OpenAI’s ChatGPT, Google’s Bard, and Anthropic’s Claude.

Musk is also working closely with President-elect Donald Trump’s team on AI policy. Trump plans to repeal Biden’s executive order on AI and advocate for development based on free speech and human flourishing.