Elon Musk’s xAI receives billions in support for AI projects
Elon Musk’s artificial intelligence company xAI has secured significant financing of $10 billion (€8.5 billion) through a combination of debt and equity funding. Morgan Stanley confirmed the development on Monday, noting that the arrangement consisted of $5 billion (€4.25 billion) in debt and another $5 billion (€4.25 billion) in funding via a strategic equity transaction. This mixed fundraising approach is aimed at minimizing xAI’s total capital costs while significantly expanding access to financial resources.
According to Morgan Stanley, the proceeds from the fundraising will contribute to the further development of xAI’s advanced AI solutions. These include the establishment of one of the world’s largest data centers and the continued development of the Grok platform. xAI has not yet commented on this latest funding round.
This latest investment follows an earlier funding round of $6 billion (€5.1 billion) that xAI secured in December, which included participation from leading investors such as Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and Kingdom Holdings. With the addition of this new funding round, the total capital raised by xAI now amounts to approximately $17 billion (€14.45 billion).
X tests AI bots for writing community notes
X has launched a pilot programme allowing developers to create artificial intelligence bots that can write community notes. These automated ‘AI note writers’ will initially operate in test mode and must be approved before going live.
Transparency is essential: the AI clearly marks all generated notes and only displays them on posts for which users have specifically requested a community note.
X believes this programme can significantly increase the speed and scale of fact-checking on the platform. They expect that community feedback on AI-generated assessments will help refine these agents, leading to more accurate, unbiased, and useful information. This creates a powerful feedback loop for improvement.
An open source system will evaluate AI contributions to ensure they are relevant and appropriate, and that they align with previous human contributions. However, the final decision on whether an AI-written note is valuable enough to be published rests with human reviewers.
X insists that AI bots must continually prove their value to users from diverse backgrounds in order to ‘earn’ the right to write notes. While he acknowledges the advantage of AI in terms of speed, Keith Coleman of X emphasizes the importance of human oversight.
Ultimately, people retain the power to decide which information is useful enough to share. This initiative reflects X’s ongoing efforts to leverage AI while prioritizing user trust through transparency and community verification.
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