Business

Elon Musk creates new company ‘X.AI’ to promote artificial intelligence

The newly formed company has Elon Musk as the only listed director, and Jared Birchall, director of Musk's family office, as secretary, according to a filing

PGurus Newsdesk

April 15, 2023

The newly formed company has Elon Musk as the only listed director, and Jared Birchall, director of Musk's family office, as secretary, according to a filing

Elon Musk forms new AI company in Nevada called X.AI to take on Microsoft’s OpenAI

Twitter CEO Elon Musk has created a new company called X.AI which will promote artificial intelligence (AI) in the ChatGPT era. X.AI has authorized the sale of 100 million shares for the privately held company, reports Wall Street Journal.

Incorporated in Nevada, Texas, the company has Musk as the only listed director, and Jared Birchall, director of Musk’s family office, as secretary, according to a filing.

Musk aims to create an AI firm to take on Microsoft-backed OpenAI, the creator of the successful AI chatbot called ChatGPT. Ironically, it was Musk who initially invested $100 million in OpenAI, but later exited the company. In recent months, ChatGPT and GPT-4 have become a rage worldwide.

In March, several top entrepreneurs and AI researchers, including Musk and Steve Wozniak, Co-founder of Apple, wrote an open letter, asking all AI labs to immediately pause training of AI systems more powerful than GPT-4 for for at least 6 months.

The open letter came as reports surfaced that Musk tried to take control of OpenAI in early 2018 but Sam Altman and OpenAI’s other founders rejected Musk’s proposal. Musk, in turn, walked away from the company and reneged on a massive planned donation, according to Semafor.

The Twitter CEO reneged on a promise to supply $1 billion in funding but contributed only $100 million before he walked away.

In March 2019, OpenAI announced it was creating a for-profit entity so that it could raise enough money to pay for the computing power.

Less than six months later, Microsoft infused $1 billion in OpenAI, and the rest is history. OpenAI’s last valuation was close to $20 billion, making it the most valuable company supported by AI globally.

Musk has lately criticized OpenAI several times.

[With Inputs from IANS]

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.