Elon Musks AI venture, xAI is said to be on the verge of securing a substantial investment from Silicon Valley investors. The company has set its sights on raising USD 6 billion at an USD 18 billion pre-money valuation, with the deal expected to be finalised in the upcoming weeks, according to reports.Direct Competition with OpenAIReports from The Information and TechCrunch indicate that xAI, founded by Musk, is poised to directly challenge OpenAI in the booming AI technology sector. Musks public criticisms of OpenAIs transition from a nonprofit model to a profit-oriented one have fueled his determination to compete with the organization he co-founded.One of xAIs key selling points to investors is its seamless integration with Musks various ventures, including SpaceX, Tesla, Neuralink, and The Boring Company. The pitch highlights xAIs potential to contribute to ambitious projects like advanced robotics and self-driving cars, aiming to master the physical world.Support from Silicon ValleyDespite recent controversies, Elon Musks ties and influence in Silicon Valley have proven advantageous for xAI. Venture capital firms, including Future Ventures, co-founded by Musks associate Steve Jurvetson, are reportedly participating in the funding round, showcasing support from the tech community.xAIs flagship offering, Grok, an AI chatbot integrated into Musks social media platform X (formerly known as Twitter), has faced criticism for its inaccuracies. It has been noted for failing to distinguish between real and fake news as well as disseminating false information.Leveraging Hype and InvestmentDespite Groks shortcomings, Musk has leveraged the hype surrounding xAI to bolster Xs performance. With X holding a stake in xAI, Musk is optimistic about translating xAIs potential into a profitable platform for his social media venture, despite the challenges posed by the AI chatbots performance issues.
