Elon Musk Creates New Company Called X.AI, as per Business Records

According to a filing made last month, Twitter and Tesla Chief Executive Officer Elon Musk has created a new Artificial Intelligence company called X.AI Corp. The company was incorporated in Nevada.

Elon Musk Shareholder Lawsuit Trial Continues In San Francisco — SAN FRANCISCO, CALIFORNIA - JANUARY 24: Tesla CEO Elon Musk leaves the Phillip Burton Federal Building on January 24, 2023 in San Francisco, California. Musk testified at a trial regarding a lawsuit that has investors suing Tesla and Musk over his August 2018 tweets saying he was taking Tesla private with funding that he had secured. The tweet was found to be false and cost shareholders billions of dollars when Tesla's stock price began to fluctuate wildly allegedly based on the tweet. Justin Sullivan/Getty Images

Establishing X.AI

Billionaire and CEO Elon Musk has established a new company, dedicated to his AI efforts. Interesting Engineering reported that Musk incorporated X.AI in Nevada last March 9th and listed himself as the Sole Director and former Morgan Stanley Banker Jared Birchall as its Secretary. The company authorized the sale of 100 million shares to the private company.

Musk has assembled a group of teams, including AI specialists, researchers, engineers, and scientists from Alphabet's DeepMind. This is part of the CEO's plans to develop interconnected applications under the brand "X," which makes sense why the startup is called X.AI.

Among the recruited scientists is DeepMind Researcher Igor Babuschkin. Musk also tried to hire OpenAI employees to join the effort but only with limited success. Once this will be successful, X.AI will become one of the additions to the heated race among tech companies developing more models related to Artificial intelligence.

For the past few months, he was recruiting researchers and several developers aiming to create a rival effort to OpenAI who launched the popularly-known chatbot ChatGPT last November. OpenAI has been in the talks of several investors who have been very vocal about their interests in the sector.

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As per The Verge, there were already several rumors circulating for the past few weeks that Musk has purchased thousands of graphic processing units (GPUs) to power an upcoming AI model and company to compete with OpenAI.

He also reportedly sought funds from his existing companies, including SpaceX and Tesla. But during an interview on Twitter Spaces, Musk did not address these rumors and only stated, "It seems like everyone and their dog is buying GPUs at this point."

Musk's AI Efforts

Wall Street Journal reported that Musk joined with other tech executives and AI researchers in proposing an extension of another six months or more moratorium on developments in advanced AI technology. As per their proposal, pausing the proponents would give the industry time to set safety standards for its design to prevent potential harm and risks.

Twitter has also merged with the umbrella company X Corp and was also incorporated in Nevada instead of its previous domicile in Delaware only last week. X Corp's parent company is named X Holdings Corp.

As per legal experts, one of the reasons why the company moved the incorporation to Nevada is because the state's laws grant more discretion and protection to the company's management and officers.