Hey everybody, welcome back to the Elon Musk podcast. This is a show where we discuss. The critical crossroads, The shape SpaceX. Tesla X, The Boring Company and Neuralink and I'm your host Will Walden if you want uninterrupted episodes of the Elon Musk podcast. Please. Go to clubelon.supercast.com to find out how. There's a link in the show notes. So Elon Musk has an AI venture ex AI, and he's planning to raise $6 billion, valuing the
company at around $20 billion. Now this is a direct challenge to Open AI, which is the entity behind the popular ChatGPT. Now, Musk's global fundraising efforts are tapping into diverse sources too, for family offices in Hong Kong to sovereign wealth funds in the Middle East. The scale of this fundraising effort is noteworthy though, especially considering XA is previous target of $1 billion, as per SEC filings last month.
And this leap to a $6 billion goal reflects the high stakes and intense competition in the AI sector now. Now Musk's strategy involves reaching out to international investors, including those in Japan and South Korea.
The evolvement of Morgan Stanley as the coordinator links back to the bank's previous collaboration with Musk on the acquisition of the social media platform X, previously known as Twitter. Now, despite a recent denial from Musk regarding a $50 million funding milestone towards a $1 billion target, the buzz around XA is fundraising
efforts hasn't waned. Musk's vision for XAI includes developing safer AI technologies, a commitment stemming from his early involvement in subsequent departure from Open AI. Now the launch of Grok XA is Chat Bot positions the company as a competitor to Open the Eyes Chat GP team. And Musk's broader concerns about AI and robotics, particularly the need for significant voting control to steer Tesla towards AI leadership, highlight this intertwining nature of his
ventures. The AI industry. Buoyed by the popularity of technologies like ChatGPT remains a dynamic field for investment right now, even in a generally subdued start up funding Climate and other AI startups like Anthropic and Inflection AI have also successfully attracted significant funding recently.
Busk's outreach to investors across different regions underscores the global interest in AI and potential geopolitical implications, especially with efforts to secure funding in places like Hong Kong amidst rising tensions between the US and also China. And the ambitious fundraising target reflects the substantial resources required for developing generative AI, which demands extensive computer power, vast data sets, and advanced hardware.
This need for heavy investment parallels the funding strategies of AI competitors like Open AI, Anthropic and others. And Musk's departure from Open AI over disagreements highlights his distinct vision for XAI, emphasizing safety and censorship concerns in the AI domain.
This has led to the creation of a chat bot that leverages social media content for more current responses and the proposed valuation of X AI and the ongoing negotiations with potential investors indicate the high stakes and speculative nature of the AI market right now.
Involvement of high profile investors in the complex financial arrangements hint at the significant expectations placed on X AI. The potential and regulatory landscape, particularly the US, measures against Chinese advancements in AI as another layer of complexity to Musk's fundraising efforts, especially in regions like Hong Kong.
Musk's vision for AI safety and governance, as evidenced by his statements in the Strategic Moves with Tesla, shows that there's broader challenges and responsibilities for AI as opposed to just letting it go wild. And the role of these major financial institutes like Morgan Stanley in coordinating such large scale fundraising efforts points to this relationship between the tech industry and the financial industry and shaping the future of AI.
Sort of likethe.com bubble from the early, late 1990s, early 2000s. And the comparison of XA is valuation with that of open AI and other peers like Anthropic of the Streets. That the competitive landscape of the AI industry and the varying scales of ambition and investment. It's making this a key player if he gets the $6 billion out of this. Now global fundraising through Musk involved diverse geopolitical regions. It's an international interest
in AI Now everybody's involved. They want that money. And the potential for cross-border collaborations and tensions in the tech sector could be real in the near future. Now there's skepticism and caution mug potential investors and there's speculative nature of the AI industry. And there's challenges. Now with all this large scale funding and it's competitive and it's rapidly changing. So Elon wants to put this money
to good use. He wants to buy the hardware to build the software so he can control the AI market. This isn't about building a a competitive AI at this point. Elon Musk is a competitor, but he also likes to own things. That's why he bought x.com. That's why he bought Twitter.
He likes to be in charge of things, and if he could get the billions of dollars that he's asking for, of course he's going to put an AI team in place that will compete directly with ChatGPT, and possibly put them out of business. Now, Musk's AI ambitions, including the potential impact on Tesla's AI strategy and the tech industry's approach to AI safety and regulation, remain important themes in the ongoing narrative around xai that we have to remember.
Tesla already has AI in their vehicles. They use it to train their vehicles to drive with the FSD program. So Elon is using similar similar tactics to that with the XAI and the billions of dollars it is asking for this funding round. Hey, thank you so much for listening today. I really do appreciate your
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