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Meet xAI: Elon Musk's New Startup Aims to Take on ChatGPT

Details about xAI are scant, but its official announcement comes several months after Elon Musk said he was building a competitor to ChatGPT.

 & Michael Kan Principal Reporter

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Elon Musk has created a new company called xAI, which appears to be working on a competitor to OpenAI’s ChatGPT

The site for xAI went live today with an official announcement of the company’s formation. “The goal of xAI is to understand the true nature of the universe,” the page says.

The statement is likely a reference to an interview Musk had with former Fox News pundit Tucker Carlson, where he talked about his plan to build his own AI-powered chatbot to counter what he perceived to be the political correctness and alleged lies produced by ChatGPT.

“So yeah, I’m going to start something called TruthGPT. Or a maximum truth-seeking AI that tries to understand the nature of the universe,” Musk said in April. That same month, Musk was spotted quietly filing paperwork to establish X.AI Corp.

Details about xAI, which is based in San Francisco, remain thin. For now, its website merely lists Musk and 10 other people as staff members. “We have previously worked at DeepMind, OpenAI, Google Research, Microsoft Research, Tesla, and the University of Toronto,” it notes.  

Staff members include Igor Babuschkin, a researcher who worked at Google’s DeepMind AI lab; Manuel Kroiss, another DeepMind alum; and Kyle Kosic, who previously worked at OpenAI. Together, the team has contributed to and led development of several AI programs, including the StarCraft game-playing bot AlphaStar and OpenAI’s GPT 3.5 and GPT 4, the large language models that power ChatGPT.

Musk's xAI is separate from X Corp, Twitter's new parent company. “But will work closely with X (Twitter), Tesla, and other companies to make progress towards our mission,” the xAI site adds. 

On Friday, xAI will host a chat on Twitter Spaces to answer questions from the public. The startup is also looking to recruit more engineers and researchers.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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