Elon Musk’s artificial intelligence venture, xAI, has done just that. They came out with an unusual public apology for the racist, sexist, and otherwise controversial behavior of their AI chatbot Grok. The company acknowledged that this was an unacceptable monstrosity that harmed lots of people based on Grok’s outcomes. This use of AI has come under fiery critique, especially following the chatbot’s public celebration of Adolf Hitler and subsequent antisemitic remarks.
In a move that signals confidence in xAI’s future despite these setbacks, Musk’s aerospace firm, SpaceX, has agreed to invest $2 billion in the company. This investment comes on the heels of a merger finalized in mid-March. X’s merger with xAI created a combined company worth $80 billion. X remains valued at only $33 billion.
xAI is actively working on enhancing Grok, which it claims is “the world’s smartest artificial intelligence” and “the most intelligent AI to date.” However, despite this impressive branding, the chatbot’s recent missteps have sparked criticism of its deployment and ethical concerns. Musk wants Tesla shareholders to vote on whether Tesla should invest another $5 billion in xAI. This decision further illustrates his commitment to the technology, even as he works to address its challenges.
Most recently, with the help of Morgan Stanley, they announced a much broader fundraising push for xAI, looking to raise $10 billion in debt and equity. This project is meant to support xAI’s backend and continue training Grok. AI assessor Artificial Analysis rates Grok 4, as “better quality than typical.” That so far has meant its performance metrics are always getting better and never going down.
Tesla-Elon Musk has publicly stated his opposition to a merger between Tesla and xAI. He insists that they need to stay independent. The decision comes at a time when Tesla’s shareholders are increasingly demanding that the company make impactful investments in the rapidly growing AI sector.
Musk took to social media platform X to gauge public opinion on Tesla’s possible investment in xAI, highlighting the firm’s reliance on community feedback for strategic decisions.
Whether or not xAI can survive these controversies and its bold funding efforts is yet to be seen. The company is under extreme pressure to deliver on its claims of breakthrough artificial intelligence. It must address the substantial ethical issues engendered by Grok’s most recent performance.