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Musk's xAI reportedly planning chatbot app rival to OpenAI's ChatGPT

Nov 27, 2024 - businessinsider.com
Elon Musk's xAI is reportedly planning to release a chatbot app that could rival OpenAI's ChatGPT, potentially launching as soon as December. The move signifies Musk's intent to challenge OpenAI, a company he co-founded but left in 2018. The chatbot app would be xAI's first product offered directly to consumers, expanding its reach beyond its current services, which include AI customer support for Starlink and Grok, a chatbot for paid subscribers of X, the social network Musk acquired in 2022.

xAI's valuation has reached $50 billion, surpassing the $44 billion Musk paid for X, but still falls short of OpenAI's $157 billion valuation. To compensate for losses registered by investors who backed Musk's acquisition of Twitter, Musk has given a quarter of xAI's shares to these investors. Despite its lower valuation, xAI is expected to surpass $100 million in annual revenue, while OpenAI anticipates revenue of $3.7 billion in 2024.

Key takeaways:

  • Elon Musk's xAI is reportedly close to unveiling a chatbot app that could rival OpenAI's ChatGPT, with a potential release as soon as December.
  • This move is seen as another sign that Musk and xAI are trying to challenge OpenAI directly. Musk co-founded OpenAI but left in 2018 and has since sued the company twice.
  • xAI's valuation has reached $50 billion, surpassing the $44 billion Musk paid to acquire X, the social network formerly known as Twitter. However, it is still smaller than OpenAI's valuation of $157 billion.
  • xAI is expected to surpass $100 million in annual revenue, while OpenAI anticipates revenue of $3.7 billion in 2024.
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