Elon Musk Announces 25% Stake in xAI for X Corp Investors

Elon Musk, the multifaceted entrepreneur behind companies such as Tesla and SpaceX, recently introduced a new artificial intelligence venture named xAI. Musk, who also owns X, formerly known as Twitter, shared news that is of great significance for investors. In a Twitter Spaces event held in early July 2023, Musk illuminated the prospects of his latest project, which he claimed would mark a significant shift for stakeholders.

Investors’ Stake in xAI

In a tweet dated November 19, 2023, Musk revealed that X Corp investors would be entitled to a 25% share of his AI enterprise, xAI. This announcement sparked interest about the future involvement of current investors in this avant-garde endeavor.

"𝕏 Corp investors will own 25% of xAI" — Elon Musk (@elonmusk) November 19, 2023

The Purpose Beyond xAI

Launched in April 2023, the primary goal of xAI, according to Musk, is to uncover the true essence of the universe. While he did not delve into the details of what he meant by the universe’s true nature, he teased that its scope extends beyond simple tasks often associated with chatbots, such as providing hotel recommendations.

Introducing Grok by xAI

This month, Musk’s xAI has rolled out its first AI model, named Grok. The name 'Grok' signifies a deep, intuitive, or empathic understanding. Musk highlighted that, unlike existing AI such as OpenAI’s ChatGPT, Google’s Bard, or Microsoft Bing Chat, Grok distinguishes itself with a unique sense of humor.

About xAI

xAI is an AI-centric company that places emphasis on scientific inquiry as well as the development of applications for both businesses and consumers. Earlier in November, Musk announced his plans to unveil cutting-edge technology through xAI. While details remain sparse, the company's collaboration with X Corp, Tesla, and other companies signals an ambitious future.

Musk asserts that xAI's products will be the paramount AI offerings currently available.

xAI’s Potential Impact on Investors

Musk has positioned xAI in direct competition with industry heavyweights like OpenAI, Google, and Anthropic. The venture is backed by a team of seasoned researchers formerly affiliated with OpenAI, Google Research, Microsoft Research, and DeepMind. Moreover, a majority of the xAI workforce, including key figures like Igor Babuschkin, has previously contributed to OpenAI’s efforts, offering a promising horizon for the new company.

Musk, xAI, Investors