Rumors about Musk starting up an AI company have been floating around for some time, with a report earlier this year from Business Insider revealing that Musk had purchased thousands of GPUs to power an upcoming generative AI product. The Financial Times similarly reported that Musk planned to create an AI firm to compete with the Microsoft-backed OpenAI. Musk even reportedly sought funding from SpaceX and Tesla investors to get the company started.
xAI’s namesake is X Corp, the name assigned to Twitter since early April, along with the “X” label Musk has applied to his vision of an “everything app.”
Musk’s AI ambitions have grown over the years since the billionaire’s split with OpenAI founders Sam Altman, Ilya Sutskever and others. Founded as a nonprofit in 2015, OpenAI took on $1 billion in donations from Musk and others.
But as OpenAI’s focus shifted from open source research to commercial projects, Musk grew disillusioned — and competitive. He poached key employees from OpenAI to work on Autopilot, Tesla’s driver assistance tech. And he became openly critical of OpenAI, referring to it as a “profit-maximizing demon from hell.”
Musk resigned from the OpenAI board in 2018. And more recently, he cut off the company’s access to Twitter data, arguing that OpenAI, which had a $2-million-a-year licensing deal with Twitter, wasn’t paying enough.
