Elon Musk's xAI reportedly set to launch ChatGPT rival

• Elon Musk’s xAI is set to launch a consumer-focused chatbot application in December
• xAI recently completed a data centre in Tennessee and announced plans to establish a game development studio
• Musk aims to use xAI to accelerate human scientific discovery and strengthen his position as a leader in the AI industry

Elon Musk’s artificial intelligence company, xAI, is reportedly on the verge of unveiling a chatbot application designed to rival OpenAI’s ChatGPT. 

The app, which could launch early in December, marks a significant step in Musk’s ongoing competition with the AI giant he co-founded before departing in 2018.

Musk has been a vocal critic of OpenAI and its CEO, Sam Altman, and has even filed multiple lawsuits against the company. He has alleged deception in his involvement with OpenAI and has since established xAI to challenge its dominance in the AI space.

xAI: Rapid growth and strategic moves

Founded last year, xAI has rapidly emerged as a significant player in the AI industry. The company has been valued at over $50 billion as of November 2024, surpassing the $44 billion Musk paid for X (formerly Twitter). 

In its short existence, xAI has already contributed to other Musk-led ventures, including providing AI-powered customer support for Starlink and developing Grok, a chatbot available exclusively to paid subscribers of X.

The upcoming chatbot app, however, would be xAI’s first product aimed directly at consumers. While xAI has not disclosed whether the app will be an extension of Grok or a completely new platform, industry insiders anticipate it will compete with leading AI models like OpenAI’s ChatGPT, Anthropic’s Claude AI, and Google’s Gemini.

Expanding horizons

xAI’s momentum has been fueled by substantial investments, with over $11 billion raised to date. The company has also achieved significant milestones, such as rapidly constructing a cutting-edge data centre in Tennessee. Industry estimates suggest that xAI could generate over $100 million in revenue this year alone. 

Musk has expressed his vision of using xAI to accelerate human scientific discovery, further solidifying the company’s position in the AI sector.

Adding to its portfolio, xAI recently announced plans for a new game development studio, signaling Musk’s broader ambitions for the company. While Musk and xAI have not publicly commented on the new chatbot app, its launch is expected to solidify xAI's standing as a top contender in the AI industry.

Positive outlook for investors

The rising valuation of xAI has provided a much-needed boost for investors who backed Musk's acquisition of X. Musk has promised to gift 25% of xAI’s shares to these investors, potentially compensating for the losses incurred from the X acquisition. Many investors view their support as a bet on Musk’s entrepreneurial vision rather than any single venture.

As xAI prepares to debut its consumer-focused chatbot, it’s clear that Musk aims to position his company as a leader in artificial intelligence, reshaping the competitive landscape.

Elon Musk’s Starlink suspends new orders in Nigeria over price increase dispute

Meanwhile, TheRadar earlier reported that orders for Elon Musk’s Starlink residential internet kits were temporarily suspended in Nigeria while awaiting approval from the Nigerian Communications Commission (NCC) for a proposed price modification.

The company's statement on the suspension explained that it is concentrating on enhancing internet service in Nigeria and pursuing regulatory clearance for the planned changes.