Elon Musk's artificial intelligence company, xAI, is set to launch a new chatbot application similar to OpenAI's ChatGPT. This move signals a direct competition with leading AI services like ChatGPT, Anthropic's Claude AI, and Google's Gemini.
Founded last year, xAI has rapidly advanced its AI technology. The company recently established a new data center in Tennessee at an unprecedented speed, and now it plans to release its standalone application swiftly. xAI has raised over $11 billion and is valued at more than $50 billion, making it a prominent AI start-up in Silicon Valley. Musk has committed to accelerating human scientific discovery through xAI, with industry estimates suggesting the company could generate over $100 million in revenue this year.
xAI's upcoming consumer-focused app aims to directly compete with existing AI services. Previously, xAI's services were mainly known through Grok, a chatbot available on the social platform X, which required users to subscribe for access. xAI also provides AI support for Musk's other ventures, such as Starlink. It remains unclear whether the new app is a version of Grok or a different application using the same technology. xAI has not yet commented on the details of the new release.
The rising value of xAI brings positive news for investors who supported Musk's acquisition of Twitter, now known as X. Musk is likely to fulfill his promise of gifting 25% of xAI's shares to these investors, potentially offsetting some of their losses from investing in X. This has led some investors to privately express that their investment was more in Musk himself rather than in the specific ventures.
