Elon Musk's AI Company May Release a Consumer App

Posted: 8:46 AM PST · November 27, 2024

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Elon Musk’s xAI Prepares to Release Consumer App

According to recent reports, Elon Musk’s AI company, xAI, is gearing up to release a standalone consumer app. This development comes as the tech world continues to witness the rise of AI-powered chatbots and virtual assistants.

Similar to OpenAI’s ChatGPT

The upcoming xAI app will reportedly be similar to OpenAI’s popular ChatGPT platform, allowing users to access xAI’s Grok chatbot from their personal devices. This move suggests that xAI is attempting to make its AI technology more accessible and user-friendly for the masses.

Funding Round and Valuation

The release of the consumer app is likely to follow xAI’s next funding round, which could reach a staggering $5 billion in investment. This influx of capital will value the company at an estimated $50 billion, nearly doubling its valuation from just six months ago.

Musk’s Reward for Loyal Investors

Elon Musk has reportedly given investors who backed his $44 billion Twitter acquisition 25% (or access to up to 25%) of the shares in xAI as a token of appreciation. This move is seen as an attempt by Musk to reward the loyalty and support of his investors.

Potential Rewards for Backers

Some of Musk’s backers, including Fidelity, Oracle co-founder Larry Ellison, and Twitter founder Jack Dorsey, could be made whole through shares in xAI thanks to the company’s massive rise in value. This development is a testament to the potential rewards that come with investing in innovative tech companies.

xAI’s Rise in Value

When xAI’s funding round closes, the company will have raised approximately $11 billion, cementing its position as one of the most valuable AI startups in the industry.

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