Elon Musk AI News & Updates

xAI Fails to Deliver Promised AI Safety Framework by Self-Imposed Deadline

Elon Musk's AI company xAI has missed its May 10 deadline to publish a finalized AI safety framework, which was promised in February at the AI Seoul Summit. The company's initial draft framework was criticized for only applying to future models and lacking specifics on risk mitigation, while watchdog organizations have ranked xAI poorly for its weak risk management practices compared to industry peers.

Elon Musk's xAI Reportedly Seeking $20 Billion in Funding

Elon Musk's xAI Holdings is reportedly in early talks to raise $20 billion in funding, potentially valuing the company at over $120 billion. If successful, this would be the second-largest startup funding round ever, behind only OpenAI's recent $40 billion raise, and could help alleviate X's substantial debt burden.

Judge Signals Concerns About OpenAI's For-Profit Conversion Despite Denying Musk's Injunction

A federal judge denied Elon Musk's request for a preliminary injunction to halt OpenAI's transition to a for-profit structure, but expressed significant concerns about the conversion. Judge Rogers indicated that using public money for a nonprofit's conversion to for-profit could cause "irreparable harm" and offered an expedited trial in 2025 to resolve the corporate restructuring disputes.

xAI Expands AI Infrastructure with Massive Memphis Property Acquisition

Elon Musk's AI company xAI has acquired a 1 million-square-foot property in Memphis to expand its AI data center operations, complementing its existing facility. The company plans to upgrade its primary Memphis facility to 1 million Nvidia GPUs this year, up from 100,000, while also expanding with another data center in Atlanta containing $700 million in hardware.

Grok 3 Release Sparks 10x Increase in App Downloads and User Engagement

xAI's release of Grok 3, Elon Musk's flagship AI model, has driven significant growth in both mobile and web usage with app downloads increasing more than 10x compared to the previous week. Daily active users soared over 260% in the US and 5x globally, though the simultaneous expansion to new markets and controversies involving censorship and inappropriate outputs may impact long-term retention.

OpenAI Plans Special Voting Rights to Safeguard Board Against Takeover Attempts

OpenAI is considering giving its nonprofit board special voting rights that would allow it to overrule major investors, protecting against hostile takeovers like the recent $97.4 billion offer from Elon Musk and investors. This move comes as OpenAI transitions from a capped-profit structure to a public benefit corporation by late 2026, with plans to separate its nonprofit arm with its own staff and leadership team.

xAI Launches Grok 3 Model Suite with Enhanced Reasoning Capabilities

Elon Musk's xAI has released its latest flagship AI model, Grok 3, trained with approximately 10 times more computing power than its predecessor using 200,000 GPUs. The release includes a family of models including Grok 3 Reasoning and Grok 3 mini, featuring specialized reasoning capabilities for mathematics, science, and programming, alongside a new DeepSearch feature for internet research.

xAI Seeks $10 Billion Funding at $75 Billion Valuation

Elon Musk's AI company xAI is reportedly in talks to raise $10 billion at a $75 billion valuation, bringing its total funding to over $22 billion. The company is also considering purchasing more than $5 billion in servers from Dell to support development of its Grok AI models, with Grok 3 expected to release in the coming weeks.

Musk Makes $97.4 Billion Bid for OpenAI, Altman Dismisses Offer

Elon Musk has reportedly made a $97.4 billion bid to acquire OpenAI, which would be one of the largest tech acquisitions in history. OpenAI CEO Sam Altman quickly dismissed the offer, responding with a suggestion he could buy Musk's X platform for a tenth of the price, highlighting growing tensions between the AI industry leaders.

Musk-Led Consortium Offers $97.4 Billion to Buy OpenAI Amid Legal Battle

Elon Musk and investors have offered $97.4 billion in cash to acquire OpenAI, with the bid expiring in May 2025. The offer comes amid Musk's lawsuit attempting to block OpenAI's conversion from nonprofit status, with his legal team stating they'll withdraw the bid if OpenAI remains a nonprofit.