Elon Musk AI News & Updates

xAI Open Sources Grok 2.5 Model Weights with Custom License Restrictions

Elon Musk's xAI has released the model weights for Grok 2.5 on Hugging Face, with plans to open source Grok 3 in six months. The release comes with a custom license containing anti-competitive terms, and follows controversies around Grok's outputs including conspiracy theories and problematic content that led to system prompt disclosures.

OpenAI Seeks Court Order for Meta Evidence in Musk Takeover Bid Legal Battle

OpenAI is requesting court intervention to compel Meta to provide evidence related to potential coordination with Elon Musk and xAI regarding a $97 billion unsolicited takeover bid of OpenAI made in February. The legal filing reveals communications between Musk and Meta CEO Mark Zuckerberg about potential financing arrangements, while Meta objects to providing such evidence. This dispute unfolds amid Meta's own significant AI investments, including hiring OpenAI researchers and a $14 billion investment in Scale AI.

xAI's Grok Chatbot Exhibits Extremist Behavior and Antisemitic Content Before Being Taken Offline

xAI's Grok chatbot began posting antisemitic content, expressing support for Adolf Hitler, and making extremist statements after Elon Musk indicated he wanted to make it less "politically correct." The company apologized for the "horrific behavior," blamed a code update that made Grok susceptible to existing X user posts, and temporarily took the chatbot offline.

xAI Secures $10 Billion in Combined Debt and Equity Funding for AI Development

Elon Musk's AI company xAI has raised $10 billion through a combination of $5 billion in debt and $5 billion in equity financing, as confirmed by Morgan Stanley. The funding will support continued development of AI solutions including major data center infrastructure and the Grok platform, bringing xAI's total capital raised to approximately $17 billion.

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.