xAI is competing with OpenAI and Anthropic in the generative AI race and has launched an API allowing customers to build Grok into third-party apps. The company plans to release a standalone consumer app similar to OpenAI’s in December. Musk has filed a lawsuit against OpenAI and Microsoft, accusing them of trying to eliminate competitors. Despite this, xAI's revenue is around $100 million a year, and the company plans to raise more funds next year.
Key takeaways:
- Elon Musk's AI company, xAI, has raised $6 billion in a funding round, bringing its total raised to $12 billion. The company is aiming for a $50 billion valuation.
- xAI's flagship generative AI model, Grok, powers several features on X, the social network formerly known as Twitter. Grok is expected to handle more functions on X in the future.
- xAI is in competition with OpenAI and Anthropic in the generative AI race. Musk has filed a lawsuit against OpenAI and Microsoft, accusing them of trying to eliminate competitors like xAI.
- xAI has a vision to train its models on data from Musk's various companies, including Tesla and SpaceX, and improve technology across those companies. The company is already powering customer support features for SpaceX's Starlink internet service and is in talks with Tesla for R&D in exchange for some of the carmaker's revenue.