Is Elon Musk Using Tesla Data to Help Sell xAI?

After previously claiming that the AI startup, xAI, is not raising funds, Elon Musk’s newest venture is reportedly set to reach an $18 billion valuation upon the closure of its current funding round. 

According to Bloomberg, which cited unnamed sources, the round could close soon, with xAI expected to raise $6 billion. Sequoia Capital is said to be among the investors in this round.

The pitch deck for xAI reportedly includes information about Musk’s other ventures, Tesla (Nasdaq: TSLA) and SpaceX, and suggests that the startup could leverage data from X, the social media platform owned by Musk, for training purposes. 

In a recent interview with CNBC’s Squawk Box, former Google CEO Eric Schmidt said that Musk’s pitch is “the combination of Twitter/X and the Tesla geographic information gives him a leg up.”

Curiously, it’s unclear how Tesla investors and users are going to be compensated for xAI data training. Unlike Musk’s other companies, Tesla is publicly traded.

This follows after Musk was reported to have been poaching Tesla engineers for xAI. As mentioned in the earlier article below, Musk had previously cited a “conflict of interest with Tesla” when he left the artificial intelligence research company OpenAI a few years ago. His rationale for starting xAI while still being at the helm of Tesla, which he also calls “an AI company,” remains unclear.

The poaching spree has also extended to xAI’s top competitors including OpenAI, Google Research, and Microsoft Research. 


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Twitter Adopts Poison Pill Rights Plan To Halt Hostile Takeover Attempt By Elon Musk

Hot off the heels of Elon Musk looking to attempt a hostile takeover of Twitter...

Friday, April 15, 2022, 01:01:42 PM

Dogecoin Sent Soaring After Elon Musk Says Tesla Will Accept the Crypto as Payment

Dogecoin was sent soaring Tuesday morning, after Elon Musk took to twitter to announce that...

Tuesday, December 14, 2021, 03:38:00 PM

Tesla Plans For Another Stock Split

Tesla (NASDAQ: TSLA) is evidently looking to lower its trading price yet again after the...

Monday, March 28, 2022, 07:56:01 AM

Is The New Tax Law About To Make US Lithium Companies Hot?

US-based electric vehicle makers are finding ways to accelerate the creation of a US battery...

Monday, September 19, 2022, 03:05:00 PM

Tesla Workers in New York State Launch Unionization Campaign

Tesla (NASDAQ: TSLA) workers are once again getting the itch to unionize. Bloomberg News on...

Tuesday, February 14, 2023, 02:20:00 PM