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.