Can Elon Musk’s X.ai Venture outpace OpenAI in the AI revolution?

Elon Musk, the ambitious billionaire, is reportedly planning to assemble a rival to OpenAI, the AI research lab he co-founded but later divested from in 2018, he TechCrunch reports.

According to sources, Musk has already hired former DeepMind employee Igor Babuschkin and a small team of engineers to begin work on the potential AI venture, tentatively named X.ai.

Musk has been critical of OpenAI, disagreeing with its decision to pursue profits instead of pure research and development. He also objects to the company’s attempts to establish ethical guidelines for AI, deeming them “too woke.” It remains unclear how Musk’s concerns align with his previous stance that AI poses a danger to humanity and requires limitations.

The Financial Times recently reported that Musk is reaching out to his vast network of investors and wealthy individuals to secure funding for X.ai.

This news, coupled with the corporate restructuring of Twitter under Musk’s X Corp and the recent business filing in Nevada, suggests that the AI venture is starting to take shape.

However, Musk may face considerable challenges in building and operating a modern AI company. OpenAI’s current position as an industry leader is the result of years of trial and error, billions of dollars in funding, and the recruitment of top AI talent from tech giants like Google and Microsoft. The concentration of AI expertise at OpenAI and other institutions, including those in China, presents a significant barrier for Musk’s new venture.

Furthermore, Musk’s controversial management style at Twitter and other companies could deter potential AI experts from joining his project. Building an AI venture requires the recruitment of experts from numerous fields, and it is uncertain whether these professionals would leave their current positions to work for Musk.

While it is now relatively easy to build and fine-tune large language models, this development may act as a barrier to entry rather than an onramp. The lack of a clear value proposition for Musk’s nascent AI company raises questions about its viability in a market saturated with tech companies already working on similar projects.

If the company’s focus is on reducing perceived top-down interference in technology-enhanced free speech, the rumored plan to train the AI model on Twitter data is an interesting choice.

Musk’s track record with Tesla’s AI development has consistently fallen short of predictions and claims, adding to the skepticism surrounding this new venture.

However, it is undeniable that Musk’s involvement in an industry often leads to significant change. While X.ai may not topple the market leader, Musk’s seemingly endless access to billions of dollars could still have a profound impact on the AI landscape.