XAI
Elon Musk’s cost-cutting war on Uncle Sam hits his own wallet; world's richest man loses 25% of fortune in bid to dismantle wasteful spending
Elon Musk's fortune crash has shocked investors as the billionaire lost 25% of his wealth—over $113 billion—after joining Trump’s government project, DOGE. Tesla stock plunged 33%, wiping out $448.3 billion in value, as public backlash soared. Musk’s bold role in Washington brought influence and controversy, helping SpaceX, XAI, and X (formerly Twitter), but hurting his image. With rising disapproval and pressure from investors, Musk is now stepping back from government work. This powerful and personal shift raises questions about what’s next for Tesla and Musk’s empire. Here’s the full story behind the money, politics, and fallout
$2 billion gone? Senators say Elon Musk used government post to shield against 65+ investigations, while White House pushes back on accusations
A Senate Democratic committee report alleges Elon Musk leveraged his government influence to evade over $2 billion in potential penalties across his companies, including Tesla and Neuralink. These accusations involve derailing investigations and making litigation disappear, according to the report. Senator Blumenthal demands transparency, while the White House dismisses the claims as false and defamatory.
'100 days of destruction': Elon Musk's alliance with Trump cost him $113,000,000,000 as he nears 130-day DOGE stint
Elon Musk is stepping back from his role in the Trump administration's cost-cutting team, DOGE, amidst Tesla's earnings plunge. His involvement granted unprecedented access and influence, benefiting SpaceX and X, formerly Twitter. However, Tesla faced backlash, with a significant stock drop and protests. Musk's departure raises questions about the sustainability of DOGE's cost-saving measures and his future advisory role. Elon Musk lost 25 percent of his wealth after he joined DOGE.
Morgan Stanley-led Wall Street banks free books from X buyout debt
A consortium of Wall Street banks, led by Morgan Stanley, has successfully sold off the remaining $1.23 billion of debt tied to Elon Musk's X Holdings Corp. (formerly Twitter) after initial investor hesitation. Improved financial performance, driven by increased revenue, cost reductions, and Musk's relationship with Donald Trump, fuelled demand.
Microsoft and OpenAI: From allies to rivals in the AI race
Once AI allies, now rivals in the making — cracks are deepening between Microsoft and OpenAI as competition, control, and cost concerns reshape their high-stakes partnership. As Microsoft develops its own models and distances itself from OpenAI's tech, the future of their alliance hangs in the balance—coexistence or an eventual split remains uncertain.
Wall Street banks sell final portion of Elon Musk's X debt, source says
Morgan Stanley and other banks have sold the remaining debt from Elon Musk's acquisition of Twitter, now known as X. The $1.2 billion in loans were sold at a discounted rate. Musk's relationship with Donald Trump and X's revenue prospects helped the sale. The acquisition was financed through a combination of secured and unsecured loans.
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Elon Musk hints at Grok algorithm upgrade after Paul Graham’s concerns over X discourse
Elon Musk said a “much improved” Grok-powered algorithm is in the works, after Y Combinator’s Paul Graham flagged concerns over declining discourse on X. While Graham doubted an algorithmic fix, Musk offered no timeline or details. The exchange reflects ongoing challenges in moderating large platforms using artificial intelligence.
Elon Musk’s XAI Holdings is in discussions to raise $20 billion
Announced in March, XAI Holdings was created from the combination of X, formerly Twitter, and Musk’s AI venture, xAI. The new funding could be used to pay down some of the debt that Musk took on when he converted Twitter into a private company, later renaming it X, sources said.
AI chatbot traffic surges 80% YoY but trails traditional search engines like Google: report
The report added that AI chatbots will not replace traditional search engines just yet, but they are reshaping how users interact with information online.
Ex-OpenAI workers seek stay on for-profit conversion of ChatGPT maker
Former OpenAI employees, backed by Nobel laureates, are urging California and Delaware's attorneys generals to block the company's shift to a for-profit structure. They fear this restructuring will compromise OpenAI's commitment to AI safety and public benefit, potentially prioritising profit over responsible development. Concerns center on the control and accountability of advanced AI technology, particularly if it surpasses human capabilities.
Grok Vision unveiled: Elon Musk's AI ‘sees’ the world through your camera
Elon Musk’s xAI has launched Grok Vision, a new feature that allows the Grok chatbot to “see” the world via smartphone cameras. Users can scan objects for instant explanations. Available on iOS, Android access requires a SuperGrok subscription. New voice and memory features further enhance the AI assistant's capabilities.
Infosys Q4 results; Sunscreen storm clears up
Infosys posted a drop in net profit for the March quarter. This and more in today’s ETtech Top 5.
Grok gets a memory: xAI rolls out recall feature, mirroring ChatGPT
Elon Musk’s xAI has launched a “memory” feature for its Grok chatbot, enabling it to recall details from past user conversations and deliver more personalised responses. Users can view, delete, or disable these memories via settings. The feature is in beta on Grok.com and its apps, but is not available in the EU or UK
Nearly 50 House Democrats say no to unauthorised AI in Donald Trump administration
While the Democrats acknowledged AI's potential to modernise the US government, they raised concerns about reported employee monitoring and access to sensitive data by DOGE and its AI tools. Trump officials have said that AI is being used to look for worker communications considered hostile to the administration, and DOGE is heavily using Grok AI technology from Musk's startup xAI.
OpenAI is working on X-like social media platform: Report
OpenAI is reportedly developing a social media platform similar to X, according to The Verge, which cited multiple sources familiar with the initiative. The project is still in its early phases, with an internal prototype featuring a social feed centered around ChatGPT’s image generation capabilities.
California attorney general declines to join Elon Musk's lawsuit against OpenAI
OpenAI wants to remove its nonprofit board as its controlling power in exchange for a valuable equity stake. Musk's suit argues that this would threaten the nonprofit's mission and he had asked the state to join the lawsuit. OpenAI has argued that it needs to remove the nonprofit's controlling role in order to raise funds from investors. To secure a $40 billion fundraising round, the company must complete its transition by the end of the year.
Amitabh Bachchan asks for urgent help from social media followers. 'I am trying hard, but...'
Amitabh Bachchan recently expressed frustration on X (formerly Twitter) about his follower count being stuck at 49 million, despite his active social media presence. In a playful post, he asked for suggestions to help increase his followers. Fans responded with a mix of humorous and creative advice, including sharing selfies with actress Rekha or wife Jaya Bachchan, engaging directly with followers, or posting about social issues. Some also suggested connecting with younger audiences through podcasts or unfiltered updates. Meanwhile, Bachchan continues to share personal moments, like visits to religious temples, keeping his followers engaged.
A16z eyes leading mega round in former OpenAI CTO’s startup Thinking Machines, sources say
Andreessen Horowitz, known as A16z, has made big bets in AI, backing competitors to AI heavyweight OpenAI. It has participated in large funding rounds for AI model startups including Elon Musk's xAI, Sutskever's Safe Superintelligence and France-based Mistral.
WhatsApp faces outage for the second time, netizens react
According to Downdetector, which tracks downtime on popular platforms, user complaints regarding WhatsApp services surged to over 3,133 at 8:19 PM. Meanwhile, some users also reported experiencing similar issues on Facebook and Instagram, which are also owned by Meta.
Alphabet, Nvidia invest in OpenAI cofounder Sutskever's SSI
The funding illustrates renewed interest from the big tech and infrastructure providers in making strategic investments in the startups developing cutting-edge AI that requires massive amounts of computing power. Alphabet, which has its own AI models, earlier in the week announced a deal by its cloud computing arm to sell SSI access to tensor processing units (TPUs), its in-house AI chips.
Group of ex-OpenAI employees back Musk's lawsuit to halt OpenAI restructure
Corporate leaders want to give investors control, drawing a host of concerns and a lawsuit from Musk and others who say business interests must be subordinated to humanitarian goals.
Elon Musk vs OpenAI: The legal feud explained as ChatGPT maker countersues world's richest person
Sam Altman-backed OpenAI has countersued Elon Musk citing a pattern of harassment by him and asked the judge to hold him responsible for the "damage he has already caused" to the company. The Tesla and SpaceX CEO had in August last year filed a lawsuit against OpenAI and others for shifting away from its founding mission to develop AI for the good of humanity and not seek corporate profit.
OpenAI countersues Elon Musk, claims harassment
OpenAI has countersued Elon Musk, accusing him of harassment and bad-faith attempts to disrupt its transition to a for-profit model. The legal battle stems from Musk’s claims that OpenAI abandoned its founding mission. A jury trial is set for next year, with tensions escalating between the former cofounders of the AI company
Did Elon Musk just sell X to 'himself' to save Tesla? Viral parody video speculates a billion-dollar shell game
Elon Musk sold X (formerly Twitter) to his AI firm xAI for $45 billion, prompting speculation. A satirical video suggests Musk's move may involve financial strategies like asset shifting to manage loans and taxes. With xAI acquiring X’s debt, Musk potentially aims to reduce capital gains tax liabilities and consolidate control over Tesla amidst market pressures.
Microsoft, turning 50, dials up Copilot actions to stay in AI game
Copilot, Microsoft's AI assistant, is gaining a host of new features to make it more proactive. The version for consumers will start remembering personal facts about them. It will offer birthday reminders or support ahead of a presentation, or consumers can opt out, Mehdi said in an interview.
Meta’s head of AI research to leave, roiling investment push
Joelle Pineau, who’s also a computer science professor at McGill University in Montreal, said she will remain at the company until May and then take some time to “observe and reflect.”
Not just images, want to make Ghibli-inspired videos? Here is a guide on how to create such videos using ChatGPT, Grok, more
AI-powered tools like ChatGPT, Grok 3, and Gemini enable users to easily create Studio Ghibli-style images and animations. This trend is growing due to the tools' ability to mimic Ghibli's nostalgic and aesthetically appealing art, making it accessible to non-artists while respecting copyright considerations.
A new star in the AI constellation
Elon Musk's xAI acquiring X for $33 billion showcases the integration of AI with social media. This deal aims to use AI models to enhance content delivery, crucial for both profitability and data acquisition for xAI's chatbot. As competition heats up from other AI ventures and rivals in the automotive sector, Musk faces challenges ahead.
Elon Musk’s xAI acquires X for $33 billion in all-share deal
Elon Musk has sold social media platform X to his xAI company in a $33 billion all-stock deal. The acquisition aims to merge xAI's AI expertise with X's vast reach. Musk values xAI at $80 billion and X at $33 billion, enhancing user experiences with advanced AI.
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