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Elon Musk Unveils xAI as ChatGPT Competitor: What is it, and Why are AI Cryptos Up?

Published July 13, 2023 11:57 AM
Omar Elorfaly
Published July 13, 2023 11:57 AM

Key Takeaways

  • Elon Musk creates an AI company despite a strong stance against it
  • xAI will not be part of Musk’s X corp but will work alongside it
  • AI-related cryptocurrencies see a bump in price following Musk’s announcement

Head of Tesla, SpaceX, the Boring Company, and former CEO of Twitter, Elon Musk, just announced the launch of xAI. The CEO has always been vocal about his stance on the speedy development of AI-based tools such as OpenAi’s ChatGPT and Google’s Bard.

Musk’s announcement described xAI as a way to “understand reality,” a vague statement that doesn’t really express the general goal of the company nor its intended products. However, followers should receive a bit more clarity on the matter during the upcoming Twitter Spaces chat. 

Following the announcement, several AI-related crypto tokens saw a boost in value, perhaps signaling a potential new chapter in the AI race.

xAI And TruthGPT

Musk wasn’t always against AI tool development. He initially started TruthGPT, his attempt at competing with the likes of ChatGPT.

Before leaving the project in 2018, Musk openly criticized ChatGPT, claiming it was trained to be “woke.” He also claimed that TruthGPT was creating artificial intelligence that would seek the universal truth and its interest.

It’s difficult not to make the connection between xAI and TruthGPT as Musk recently purchased 10,000 GPUs , an important computer component in the development of generative AI.

“AI is more dangerous than, say, mismanaged aircraft design or production maintenance or bad car production, in the sense that it is, it has the potential — however small one may regard that probability, but it is non-trivial — it has the potential of civilization destruction,” said the tech entrepreneur in an interview 

“I’m definitely starting late, but I will try to create a third option,” said Musk, adding that “This might be the best path to safety, in that an AI that cares about understanding the universe is unlikely to annihilate humans, because we are an interesting part of the universe.”

The only clarity Musk has provided on his intention towards AI as an entrepreneur and a potential key player in the space was in regards to his desire to “detect & highlight manipulation of public opinion on this platform,” referring to Twitter. 

A Good Day For AI Tokens

Following Musk’s announcement of xAI, crypto tokens such as Cardano-Linked SingularityNET (AGIX) that focus on AI services such an uptick in price. 

AGIX’s protocol focuses on creating an environment where anybody can easily “create, share, and monetize” AI services through its globally accessible AI marketplace. 

Fetch.ai (FET), a protocol where, according to its website , “you can build, deploy and connect smart agents to automate web3 systems and reinvent business models” also saw a 3% uptick in value as AI-based commotion increased following Musk’s announcement.

What Should We Expect From xAI?

Stakeholders only need to wait until Friday, July 14th, to join Musk’s Twitter Spaces chat created to address xAI and any questions surrounding it.

But, if patterns are to be considered, TruthGPT/xAI will likely focus on addressing issues users have with using the likes of ChatGPT and potentially giving “objective” and “unbiased” generative answers to user queries. 

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