xAI’s next move might surprise you

XAI

xAI’s next move might surprise you

Elon Musk’s xAI is reportedly planning to launch a chatbot app in December, aiming to compete with OpenAI’s ChatGPT.

If released, this would be xAI’s first product for consumers and could expand its reach beyond its current business-focused services.

What you should keep in mind:

• xAI is valued at $50 billion, compared to OpenAI’s much higher $157 billion valuation.

• The chatbot app could be xAI’s first direct-to-consumer product, widening its audience.

• Musk gave 25% of xAI shares to investors who took losses when he acquired X (formerly Twitter) for $44 billion.

Shaking things up

xAI, founded last year, has so far provided AI tools for Musk’s other ventures.

These include customer support for Starlink and Grok, a chatbot limited to paying subscribers of X.

The new app could position xAI as a more serious player in the consumer AI market.

While xAI’s valuation and expected revenue of over $100M lag far behind OpenAI’s $3.7 billion forecast for 2024, the launch shows Musk’s ambition to challenge the company he co-founded but left in 2018.

Musk has since sued OpenAI and its CEO, Sam Altman, twice.

There’s still a significant gap between xAI and OpenAI, but this app could be the first step in closing it.

Well, the chatbot wars are heating up.