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Elon's XAI $6B Funding Round · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk podcast.
• 0:05
  This is a show where we discuss. The critical crossroads, The
• 0:08
  shape SpaceX. Tesla X, The Boring Company and
• 0:12
  Neuralink and I'm your host Will Walden if you want uninterrupted
• 0:17
  episodes of the Elon Musk podcast.
• 0:19
  Please. Go to clubelon.supercast.com to
• 0:23
  find out how. There's a link in the show
• 0:26
  notes. So Elon Musk has an AI venture
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  ex AI, and he's planning to raise $6 billion, valuing the
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  company at around $20 billion. Now this is a direct challenge
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  to Open AI, which is the entity behind the popular ChatGPT.
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  Now, Musk's global fundraising efforts are tapping into diverse
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  sources too, for family offices in Hong Kong to sovereign wealth
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  funds in the Middle East. The scale of this fundraising
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  effort is noteworthy though, especially considering XA is
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  previous target of $1 billion, as per SEC filings last month.
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  And this leap to a $6 billion goal reflects the high stakes
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  and intense competition in the AI sector now.
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  Now Musk's strategy involves reaching out to international
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  investors, including those in Japan and South Korea.
• 1:16
  The evolvement of Morgan Stanley as the coordinator links back to
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  the bank's previous collaboration with Musk on the
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  acquisition of the social media platform X, previously known as
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  Twitter. Now, despite a recent denial
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  from Musk regarding a $50 million funding milestone
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  towards a $1 billion target, the buzz around XA is fundraising
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  efforts hasn't waned. Musk's vision for XAI includes
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  developing safer AI technologies, a commitment
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  stemming from his early involvement in subsequent
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  departure from Open AI. Now the launch of Grok XA is
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  Chat Bot positions the company as a competitor to Open the Eyes
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  Chat GP team. And Musk's broader concerns
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  about AI and robotics, particularly the need for
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  significant voting control to steer Tesla towards AI
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  leadership, highlight this intertwining nature of his
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  ventures. The AI industry.
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  Buoyed by the popularity of technologies like ChatGPT
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  remains a dynamic field for investment right now, even in a
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  generally subdued start up funding Climate and other AI
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  startups like Anthropic and Inflection AI have also
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  successfully attracted significant funding recently.
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  Busk's outreach to investors across different regions
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  underscores the global interest in AI and potential geopolitical
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  implications, especially with efforts to secure funding in
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  places like Hong Kong amidst rising tensions between the US
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  and also China. And the ambitious fundraising
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  target reflects the substantial resources required for
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  developing generative AI, which demands extensive computer
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  power, vast data sets, and advanced hardware.
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  This need for heavy investment parallels the funding strategies
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  of AI competitors like Open AI, Anthropic and others.
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  And Musk's departure from Open AI over disagreements highlights
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  his distinct vision for XAI, emphasizing safety and
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  censorship concerns in the AI domain.
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  This has led to the creation of a chat bot that leverages social
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  media content for more current responses and the proposed
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  valuation of X AI and the ongoing negotiations with
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  potential investors indicate the high stakes and speculative
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  nature of the AI market right now.
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  Involvement of high profile investors in the complex
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  financial arrangements hint at the significant expectations
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  placed on X AI. The potential and regulatory
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  landscape, particularly the US, measures against Chinese
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  advancements in AI as another layer of complexity to Musk's
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  fundraising efforts, especially in regions like Hong Kong.
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  Musk's vision for AI safety and governance, as evidenced by his
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  statements in the Strategic Moves with Tesla, shows that
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  there's broader challenges and responsibilities for AI as
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  opposed to just letting it go wild.
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  And the role of these major financial institutes like Morgan
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  Stanley in coordinating such large scale fundraising efforts
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  points to this relationship between the tech industry and
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  the financial industry and shaping the future of AI.
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  Sort of likethe.com bubble from the early, late 1990s, early
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  2000s. And the comparison of XA is
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  valuation with that of open AI and other peers like Anthropic
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  of the Streets. That the competitive landscape
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  of the AI industry and the varying scales of ambition and
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  investment. It's making this a key player if
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  he gets the $6 billion out of this.
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  Now global fundraising through Musk involved diverse
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  geopolitical regions. It's an international interest
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  in AI Now everybody's involved. They want that money.
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  And the potential for cross-border collaborations and
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  tensions in the tech sector could be real in the near
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  future. Now there's skepticism and
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  caution mug potential investors and there's speculative nature
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  of the AI industry. And there's challenges.
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  Now with all this large scale funding and it's competitive and
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  it's rapidly changing. So Elon wants to put this money
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  to good use. He wants to buy the hardware to
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  build the software so he can control the AI market.
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  This isn't about building a a competitive AI at this point.
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  Elon Musk is a competitor, but he also likes to own things.
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  That's why he bought x.com. That's why he bought Twitter.
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  He likes to be in charge of things, and if he could get the
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  billions of dollars that he's asking for, of course he's going
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  to put an AI team in place that will compete directly with
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  ChatGPT, and possibly put them out of business.
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  Now, Musk's AI ambitions, including the potential impact
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  on Tesla's AI strategy and the tech industry's approach to AI
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  safety and regulation, remain important themes in the ongoing
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  narrative around xai that we have to remember.
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  Tesla already has AI in their vehicles.
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  They use it to train their vehicles to drive with the FSD
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  program. So Elon is using similar similar
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  tactics to that with the XAI and the billions of dollars it is
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  asking for this funding round. Hey, thank you so much for
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  listening today. I really do appreciate your
• 6:33
  support. If you could take a second and
• 6:35
  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
• 6:41
  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode and each episode
• 6:46
  is about 10 minutes or less to get you caught up quickly.
• 6:50
  And please, if you want to support the show even more, go
• 6:53
  to patreon.com/stage Zero and please take care of yourselves
• 6:58
  and each other. I'll see you tomorrow.