Background reading:

xAI, founded by Elon Musk in March 2023, is an American startup company focused on artificial intelligence (AI). Its stated goal is “to understand the true nature of the universe”. One of its immediate objectives is to create an AI that is way capable of advanced mathematical reasoning, something not found in current models.

On November 4, 2023, xAI unveiled Grok, an AI chatbot that is integrated with X. xAI has indicated that the bot will only be available to X's Premium+ subscribers when it is out of beta.

Here are some key points about xAI:

1. Ownership Structure:

   • xAI has adopted an unusual corporate structure as a benefit organization rather than a profit-seeking entity. This structure allows xAI to prioritize societal impact while paying less attention to shareholder obligations.

   • Investors in X Corp (Twitter), which is owned by Elon Musk, will own a quarter of xAI.

2. Relationship with Twitter:

   • xAI works closely with Twitter, now called X Corp., and Tesla, among other companies, to make progress toward its mission.

   • While xAI collaborates with Twitter, it is not a subsidiary of Twitter.

The market will resolve based on the valuation of xAI disclosed in the documentation related to any financing deal and compared to the valuation of OpenAI estimated to-date by a reputable source e.g. Pitchbook, Dealroom, Techcrunch.