Investors considering Elon Musk’s artificial intelligence venture, xAI, are reportedly focusing on two key points: the opportunity to tap into the billionaire’s network of companies known as the “Muskonomy” and the initial accomplishments of one of its major rivals and ChatGPT-parent OpenAI.
What Happened: In December and January, a slide deck circulated among potential investors, highlighting Musk's past achievements and featuring OpenAI.
The presentation features a slide talking about the "key attributes that drove OpenAI's success," including strategic partnerships and access to capital. It also showcases a side-by-side comparison illustrating xAI's similarities, reported Bloomberg.
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A different slide in the presentation depicts graphs showing OpenAI’s rapid user expansion and anticipated revenue growth. It includes a sentence saying, "OpenAI provides line of sight to xAI's potential trajectory."
The presentation further talks about Musk's achievements as an entrepreneur. This part gives a refresher course on many of his other companies.
The deck also lists X (formerly Twitter) and electric-vehicle manufacturer Tesla Inc. TSLA as strategic partners for xAI, highlighting them as sources of training data for the technology development.
One slide, called the "Muskonomy" in the deck, apparently evidenced Musk's ability to raise billions across his enterprises and reportedly served as an example of how that success could be replicated at xAI.
"XAI is led by a world-class entrepreneur in Musk with a demonstrated track record of building large cap market leaders, especially with deep tech/new frontier businesses that demand significant engineering expertise," the presentation reads.
It is pertinent to note that last month Musk shot down reports saying that xAI is looking to raise up to $6 billion.
Why It's Important: Musk co-founded xAI in 2023, and subsequently launched its first and only commercial product yet named "Grok." This chatbot assistant is currently available to paid subscribers on X.
In January, it was reported that xAI has secured a minimum of $500 million in financing, aiming to achieve a total equity of $1 billion. During that period, discussions were underway regarding a valuation ranging between $15 billion and $20 billion.
The tech billionaire has often slammed the relationship between Microsoft Corporation and OpenAI, the AI startup he helped co-found in 2015 and subsequently left in 2018 over some differences.
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