Elon Musk, a prominent figure in the tech industry, continues to make significant strides in the realm of artificial intelligence. This time, he’s making waves with his latest investment in xAI, a direct competitor to OpenAI.
Elon Musk and artificial intelligence have been discussed frequently lately. If you remember, yesterday we shared that Musk was considering building a Tesla artificial intelligence fleet.
The latest move from Musk is the xAI company, which he positions as a competitor to OpenAI.
xAI is close to being boosted by a $6 billion investment
With a $6 billion funding round on the horizon, xAI is poised to significantly bolster its influence in artificial intelligence, potentially paving the way for groundbreaking advancements.
According to incoming information, xAI is close to a deal in the $ 6 billion funding round with a valuation of $ 18 billion. Sequoia Capital is also expected to be involved in the deal.
As a founding member of OpenAI, Musk’s involvement with xAI has sparked a contentious relationship between the two startups. However, xAI’s ability to secure such a substantial funding round underscores investors’ growing interest and trust in the AI sector. This development positions xAI as a formidable competitor to OpenAI, promising significant advancements in AI technology.
Meanwhile, Grok-1.5V also outperforms ChatGPT and similar artificial intelligence language models. It seems to do incredible work, especially in coding and math questions.
Still, it should be noted that OpenAI is not an easy competitor. After all, this company has been working in artificial intelligence for a very long time. Even though Elon Musk is one of the founders of OpenAI, he is still a formidable opponent.
The competition between the two companies is expected to lead to important developments in artificial intelligence.
So, who will carry the flag?
The world’s leading technology companies invest billions of dollars in artificial intelligence. We recently shared that Meta AI will be integrated into Instagram, Facebook, and WhatsApp.
On the other hand, investments are not only for social media platforms. Companies are also investing in critical resources such as computer chips.
Apart from these, some prominent investments and planned future investments are as follows:
- Google plans to allocate about $12 billion or more for capital expenditures every quarter this year. Most of the allocated budget will be used for new data centers and artificial intelligence infrastructure.
- Microsoft spent $14 billion on AI last quarter, and these investments are expected to increase further in the coming years.
- Meta plans to increase its AI investments by up to 10 billion dollars this year. The developments I mentioned above have already been well-received in the tech world.
- Nvidia has started producing computer chips known as GPUs (graphics processing units) specifically designed to run AI algorithms. The company’s success can be attributed to the rapid growth of the AI market. It is also worth noting that the company has tripled its revenues in the last two years and is expected to reach $24 billion in the second quarter of 2024.
“Building the leading AI model will be a bigger undertaking than any other experience we add to our apps and will probably pay off in a few years“.
– Mark Zuckerberg
In our related article, you can look closely at Mark Zuckerberg’s thoughts on the subject.
Major technology companies are making substantial investments to shape the future of AI. These investments are transforming the tech landscape and have far-reaching economic, energy, and societal implications.
Featured image credit: vecstock / Freepik
