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xAI raises $6b while Musk slaps more pages onto his OpenAI lawsuit

Nov 16, 2024 - morningbrew.com
Elon Musk's company, xAI, is raising $6 billion to reportedly purchase 100,000 Nvidia chips, according to CNBC. This funding round will value the company at $50 billion, making it the sixth most valuable startup globally. Musk is also intensifying his legal battle with OpenAI and its CEO Sam Altman, expanding antitrust accusations and adding Microsoft and LinkedIn co-founder Reid Hoffman as defendants.

Musk co-founded OpenAI in 2015 but left in 2018. He sued the company earlier this year, alleging it created an unfair monopoly in the AI space and reneged on its initial open source promises. He dropped the suit three months later, only to revive it in August with additional allegations. OpenAI has dismissed the complaints as a "PR stunt."

Key takeaways:

  • Elon Musk's company xAI is raising $6 billion to reportedly buy 100,000 Nvidia chips, which will value the company at $50 billion, making it the 6th most valuable startup in the world.
  • Musk is in a legal battle with OpenAI and its CEO Sam Altman, accusing them of creating an unfair monopoly in the AI space and not keeping their open source promises.
  • Microsoft and LinkedIn co-founder Reid Hoffman have been added as defendants in Musk's lawsuit against OpenAI.
  • Musk originally co-founded OpenAI in 2015, left in 2018, and sued the company earlier this year. He dropped the suit but brought it back in August with more allegations.
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