Elon Musk’s AI Startup to Launch App Following $5 Billion Funding

Elon Musk’s AI startup, xAI, is preparing to release a standalone consumer application, according to WSJ, citing sources.

The publication reports that the app will resemble OpenAI’s ChatGPT, allowing users direct access to the AI-based chatbot Grok from personal devices.

The application is set to launch following the closure of the next funding round, journalists noted. Elon Musk’s company aims to raise $5 billion, valuing the firm at $50 billion, more than doubling its worth.

According to the Financial Times, Musk has offered investors who supported the acquisition of Twitter access to 25% of xAI shares as a token of appreciation.

Journalists added that some of the entrepreneur’s backers, such as Fidelity, Oracle co-founder Larry Ellison, and Twitter founder Jack Dorsey, will profit from the AI startup’s stock growth.

Upon closing the new investment round, xAI’s total raised funds will reach $11 billion. Previously, the startup secured $6 billion.

In October, OpenAI raised $6.6 billion, valuing the company at $157 billion. The firm was co-founded by Musk, Sam Altman, and others. In 2018, the billionaire left the company due to disagreements over its direction.

In August, Elon Musk renewed a lawsuit against OpenAI, accusing the startup and its founders, Sam Altman and Greg Brockman, of breaching the founding agreement. He claimed the company prioritized commercial gain over public interest.