Gene Munster Predicts 'Boat Loads' Of Funding For Elon Musk's xAI After It Open Sources Grok: 'Many Will See This As A Swing At OpenAI'

Tesla and SpaceX CEO Elon Musk is set to open source the code of his AI chatbot Grok, a move that could significantly impact the AI industry.

What Happened: On Monday, Musk revealed that his AI startup venture, xAI, will make Grok “open source,” this week. The move was seen as a direct challenge to ChatGPT-parent OpenAI, a company that the tech mogul co-founded in 2015 and left in 2018.

Now, Deepwater Asset Management’s managing partner, Gene Munster, has shared his thoughts on Musk’s announcement. He believes that Musk’s xAI is rapidly advancing and is on track to become the leading private AI company.

Munster also predicted that xAI will soon need to raise substantial funds to maintain its competitive edge. “Musk reports that xAI has not and is not raising money, but I believe that will soon change because speed and deep pockets are paramount in the AI race,” he said, adding, “When it does, he's going to raise boat loads of money fast.”

Why It Matters: Earlier in February, Munster had predicted that Musk’s acquisition of Twitter, now rebranded as X, would boost the value of his AI company xAI.

“The reason is Twitter’s data is powerful (best source of real time intention), and he’ll use the data to train xAI to be a top three Foundation Model,” he said at the time, adding, “Those models should be valued in the hundreds of billions of dollars.”

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