Elon Musk’s AI spinoff is seeking $4B that could level up Grok: Report

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Musk is seeking investors to backmost his ChatGPT rival, Grok, which has entered a crowded AI chatbot marketplace.

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Tech entrepreneur Elon Musk is seeking to rise up to $4 cardinal for his artificial quality (AI) startup xAI, the inventor of the X-linked AI chatbot Grok. 

Select investors are reportedly being offered the accidental to enactment successful backing rounds for the AI startup done peculiar intent vehicles (SPVs), according to an email sent to imaginable investors. 

SPV structures let antithetic task superior firms and individuals to put unneurotic done a azygous entity. However, determination are upfront fees of up to 5% and absorption fees and involvement to beryllium added on, according to reports.

Reports also uncover that Musk is looking to rise $3 billion–$4 cardinal successful a woody that could worth the institution astatine $18 cardinal pursuing the completion of the backing round, and the steadfast “expects to rise the funds successful the adjacent 2–3 weeks connected a first-come, first-served basis.”

XAI was founded by Musk successful March 2023 and launched successful July of that twelvemonth and is headquartered successful the San Francisco Bay Area successful California. The steadfast has the lofty ambition of “understanding the existent quality of the universe.”

The steadfast launched its archetypal product successful November, claiming that its X-linked chatbot Grok tin outperform ChatGPT.

The email transportation reportedly highlighted imaginable selling points for investors, including Musk’s way grounds astatine Tesla and the grooming of the AI exemplary connected information from Musk’s microblogging web X.

Entrepreneur and angel capitalist Mario Nawfal commented connected the news, stating that arsenic AI investments skyrocket with billions flowing into startups, “concerns astir an AI bubble turn amid soaring valuations and precocious improvement costs.”

Source: Mario Nawfal

XAI’s in-house AI tutors hail from a wide array of fields and are tasked with creating and curating high-quality information for grooming and evaluating its models, according to the authoritative website.

Related: Groq AI spot strategy goes viral and rivals ChatGPT, challenges Elon Musk’s Grok

In March, Musk said that xAI was making the AI chatbot open-source to situation OpenAI’s closed ChatGPT model.

However, xAI remains a tiny startup contempt its multibillion-dollar valuation, with conscionable 10 full-time engineers and betwixt 5,000 and 10,000 GPUs, according to reports.

Cointelegraph reached retired to xAI for further details but did not person an contiguous response.

Grok is portion of a crowded AI chatbot marketplace with competitors specified arsenic OpenAI’s ChatGPT, Antropic’s Claude, Microsoft’s Copilot, Google’s Gemini and Meta AI from the institution formerly known arsenic Facebook.

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