According to the latest reports from the Wall Street Journal, Tesla CEO Elon Musk's generative AI company xAI is expected to achieve an annual revenue of over $100 million soon, while it may launch an independent Grok chatbot application next month, further solidifying its position in the AI market. Grok has attracted a large number of users due to its unique features and optimized performance, and experts point out that the release of this application not only enhances user experience but is also expected to facilitate more business collaborations.
In addition, Musk recently announced the establishment of an AI game studio. He stated that he hopes to 'make games great again' through this new project.
Too many game studios that are owned by massive corporations. @xAI is going to start an AI game studio to make games great again! https://t.co/UR4nFODyfd
— Elon Musk (@elonmusk) November 27, 2024
Musk criticized the current phenomenon of the gaming industry being controlled by large companies in a tweet, emphasizing that his studio will not implement traditional ESG or DEI strategies, but will focus on innovation and player needs.
On the other hand, Musk has not forgotten the backers who funded him in buying Twitter (now renamed X). Although X's valuation has declined due to the loss of advertisers, these backers are now receiving substantial returns due to xAI's soaring valuation.
Reports indicate that this year, xAI's valuation doubled from $25 billion to $50 billion in just six months and completed a $5 billion funding round. Notably, these fundraising opportunities were only open to previous supporters of Musk's Twitter acquisition (now X), including Oracle founder Larry Ellison, Twitter founder Jack Dorsey, Saudi Prince Alwaleed bin Talal, Fidelity, Sequoia Capital, and a16z, among others, who together hold 25% of xAI's equity.
In addition, Binance was one of the backers that funded Musk back then, which means Binance may also participate in xAI's recent funding round.
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