Elon Musk plans to launch a new chatbot to take on OpenAI: Report
This comes after Musk commissioned Colossus, a massive new data center in Memphis, Tennessee, in just 122 days with 100,000 Nvidia graphic processing units
Elon Musk is planning to launch a new chatbot to further scale his artificial intelligence (AI) startup xAI and take on OpenAI which he also had co-founded, but left in 2018 due to a power struggle.
Musk remains fixated on competing against OpenAI. He sued it last year for allegedly violating a contract to remain a nonprofit and discouraging its investors from giving money to xAI. (Getty Images)
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He says this will be the world’s most powerful AI “by every metric” and could launch by December, according to a Wall Street Journalreport.
This comes as a by-product of Musk pushing contractors to build Colossus, a massive new data centre in Memphis, Tennessee, in just 122 days with 100,000 Nvidia graphic processing units (GPUs), a feat unheard of, considering the size of the project.
This comes at a time when Musk remains fixated on competing against OpenAI. He sued it last year for allegedly violating a contract to remain a nonprofit and discouraging its investors from giving money to xAI.
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OpenAI called the lawsuit “baseless and overreaching.”
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OpenAI called the lawsuit “baseless and overreaching.”
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Musk commissioned Colossus after he felt Oracle, which is run by his longtime friend Larry Ellison, wasn't fast enough in providing access to its GPUs for xAI.
Nvidia on the other hand, felt significant supply chain strains due to Musk's GPU demands.
So far, most of the revenue xAI registered came from Musk’s web of companies, with its main product, the Grok chatbot being available only to subscribers of his social network X (Formerly Twitter).
xAI told investors its revenue is on pace to surpass just $100 million annually, while in comparison, OpenAI expects to bring in nearly $4 billion of revenue this year.
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Despite this, it is still working on powering customer features for SpaceX’s Starlink internet service, according to the report which added that it may also get some Tesla revenue in exchange for providing it access to its technology and resources.
It also released a paid tool developers can use to build products using Grok, offering discounts as an incentive.
xAI's current valuation is $50 billion after this month's funding round, making it the second most valuable AI company after OpenAI.
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