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Musk’s xAI: His Own Version of OpenAI?

by Gulnoza Sobirova
February 17, 2025
in Entrepreneurs
Reading Time: 4 mins read
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Musk’s xAI: His Own Version of OpenAI?
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Elon Musk has always been a key player in artificial intelligence. In 2015, he co-founded OpenAI with the goal of developing AI that would be safe, ethical, and beneficial to humanity. At the time, the company was a nonprofit, meaning it wasn’t focused on making money but rather on ensuring AI was accessible to everyone. Musk believed that AI should be developed transparently and without corporate control.

However, things changed over time. By 2018, Musk left OpenAI, claiming he disagreed with its direction. He later said that OpenAI had become too focused on profit and had formed a close partnership with Microsoft, which now provides billions of dollars in funding. Musk argued that OpenAI had betrayed its original mission and was no longer working for the good of humanity. Instead of just criticizing OpenAI, he decided to create his own AI company—xAI.

With xAI, Musk claims he will develop a better, safer, and more independent version of AI. But is xAI really a competitor to OpenAI, or is it just another one of Musk’s ambitious ideas?

What is xAI?

xAI was launched in 2023 as a direct rival to OpenAI. Musk positioned it as an AI company that would be more transparent and less restricted than OpenAI’s ChatGPT. He believes AI should not be controlled by big corporations like Microsoft, which now has a major influence over OpenAI. Instead, xAI aims to develop AI models that are open and aligned with human values, rather than being designed to maximize profits.

One of xAI’s key differences is its connection to Musk’s other companies, including Tesla, SpaceX, and X (formerly Twitter). Instead of just focusing on AI for writing and coding, like OpenAI, xAI wants to create AI that can be used in real-world applications. Musk envisions AI helping Tesla improve its self-driving technology, making cars smarter and safer. He also believes AI can assist SpaceX with space missions by analyzing data and optimizing flight paths. xAI is also expected to enhance X (Twitter) by integrating AI-powered chatbots to make conversations more interactive.

The first major product from xAI is Grok, an AI chatbot that is built into X (Twitter). Unlike ChatGPT, Grok is designed to be more witty, rebellious, and unfiltered. It also has the advantage of being able to access real-time information from X, while ChatGPT only knows information up to a certain date. However, many experts believe Grok is still behind OpenAI’s ChatGPT in terms of intelligence and reasoning.

How is xAI Different from OpenAI?

Musk has been vocal about why he believes xAI is a better alternative to OpenAI. He argues that OpenAI has become too restrictive, limiting what its AI can do and say. He believes AI should be free from corporate influence, and xAI is built to be more open-source and independent. 

Unlike OpenAI, which mainly focuses on AI for writing, coding, and research, xAI is deeply linked to Musk’s businesses. It aims to create AI that helps self-driving cars, assists in space exploration, and even enhances online conversations.

One of Musk’s biggest concerns is AI safety. He has warned for years that AI could become dangerous if not developed carefully. He claims OpenAI is moving too fast without enough safety measures. According to Musk, xAI will focus on developing AI that aligns with human values and remains under human control.

The Competition: Can xAI Catch Up?

Right now, OpenAI is far ahead in the AI race. It has billions of dollars in funding, a strong partnership with Microsoft, and some of the best AI researchers in the world. OpenAI’s ChatGPT is widely used, and its latest versions are incredibly powerful. Meanwhile, Google DeepMind and Anthropic are also competing to build the most advanced AI models.

xAI, on the other hand, is still in its early stages. While Musk has hired top AI engineers and raised billions in funding, xAI has yet to prove it can build models that match or surpass OpenAI. Grok, for example, is still seen as less capable than ChatGPT, and it’s unclear how fast xAI can improve.

However, Musk has a history of turning small ideas into massive successes. Many people doubted Tesla, but it became the world’s most valuable car company. SpaceX was once considered too risky, but now it leads the space industry. If Musk is serious about AI, he could turn xAI into a major player in the industry.

But time is running out. OpenAI, Google, and Anthropic are moving fast, improving their AI models every few months. If xAI doesn’t catch up soon, it might fall too far behind.

The Future of xAI vs. OpenAI

The battle between xAI and OpenAI is about more than just technology—it’s a fight over who should control AI. Musk believes AI should be open and not influenced by big corporations, while OpenAI argues that it needs corporate partnerships to fund its research.

The future of AI is uncertain, but one thing is clear: Musk isn’t giving up. Whether xAI becomes a true competitor or just another side project in Musk’s empire, the AI race is just getting started.

Prepared by Navruzakhon Burieva

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