Can Elon Musk's xAI take on OpenAI? – The Economist

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Every day seems to bring fresh bets on artificial intelligence (AI). In the past few weeks CoreWeave, an AI cloud-computing company, and H, a French AI startup, have raised hefty sums of money. On May 26th it was Elon Musk’s turn. The tech billionaire’s startup, christened xAI, said it had raised $6bn at a valuation of $24bn. The investors include such Silicon Valley stalwarts as Sequoia Capital and Andreessen Horowitz, two venture-capital (VC) giants, and an investment fund with ties to the Saudi royal family. Their lavish backing puts xAI’s financial firepower in the big leagues, alongside model-builders such as OpenAI, the creator of ChatGPT, and Anthropic (see chart). Can Mr Musk compete with the AI superstars?
This article appeared in the Business section of the print edition under the headline “Upping the X ante”
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