• xAI previously announced plans to raise $1 billion through an equity offering in December.
  • Musk competes with OpenAI, which he co-founded, in bringing the next generation of generative AI to the market.
  • Musk's competition with OpenAI intensified after the launch of OpenAI's GPT-4 last year.

Elon Musk's artificial intelligence project xAI has recently obtained $500 million in new funding, according to a report by Bloomberg. This comes amidst a dispute over the role of AI technology in his electric car company. 

In December, Musk's AI startup announced its plan to raise $1 billion through an equity offering, and it had already secured more than $134 million at that time.

Musk has competed with OpenAI, the company he co-founded, to bring the next generation of generative AI to the market since the launch of OpenAI's GPT-4 last year. 

Musk has been promoting his AI model, which was first announced in July, as the current best, while xAI claims that Grok, their upcoming AI model, will have "real-time knowledge of the world" due to its connection with Twitter.

Musk has expressed concerns about the potential dangers of AI, including its ability to take control of computer and weapon systems. He also believes that AI will eventually replace humans in the workforce.

According to Musk, there will come a point where no job is necessary because AI will be capable of performing all tasks.


Edited by Shruti Thapa