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Elon Musk continues to captivate the world with his bold moves in technology. The founding of xAI stands as one of his most prominent obsessions. This company was born from his desire to harness artificial intelligence to unravel the mysteries of the universe. Musk sees AI as a key tool to accelerate scientific discovery. This vision emerged after he left OpenAI due to differing directions. Now, xAI is rapidly growing with products like Grok. Yet, its journey is filled with controversy and major collaborations.

Background of xAI’s Founding

Musk established xAI in 2023 as a response to the global AI landscape. He wanted a company focused on pursuing pure truth. Additionally, Musk worried that AI could pose a threat if not properly controlled. His personal experiences shaped this vision. He once funded OpenAI but left when he felt its direction strayed.

Meanwhile, Musk has always been fascinated by big questions about existence. He often discusses theories like the simulation hypothesis. xAI became a platform to chase that understanding. The company attracts top talent from various fields. On the other hand, Musk emphasizes a responsible approach.

Musk’s Experience with OpenAI

Musk co-founded OpenAI in 2015 with Sam Altman. At the time, the goal was to develop AI for humanity’s benefit. However, differences in vision surfaced over time. Musk felt OpenAI shifted to a commercial model prioritizing profit. He worried this could be dangerous.

In 2018, Musk officially left OpenAI. He voiced concerns about existential AI risks. A quote from his interview highlights his dissatisfaction: “I want AI that seeks truth, not one that misleads.” This experience drove him to found xAI.

Additionally, Musk sued OpenAI in 2024, alleging a breach of the original agreement. Though later withdrawn, the lawsuit underscored his obsession. Analysts, like those from The Guardian, called it a fierce rivalry. On the other hand, it strengthened Musk’s commitment to xAI.

Musk learned from this failure. He recruited top engineers for xAI. The company grew quickly thanks to these lessons.

Vision of Understanding the Universe

Musk often states that xAI’s mission is to understand the universe. He wants AI to help answer fundamental questions, like the origin of life or the nature of the cosmos. A quote from his X post reads, “Join xAI if you believe in the mission to understand the universe.”

This vision draws inspiration from science fiction. The name Grok comes from Robert Heinlein’s novel. Musk wants AI that understands deeply. Meanwhile, xAI focuses on building honest, objective AI models.

Analysts from Yahoo Finance highlighted this approach. They say Musk wants AI free from political bias. On the other hand, this obsession aligns with SpaceX. Both companies support exploration.

Musk believes AI can accelerate discoveries. He often talks about AI’s potential in cosmological simulations.

xAI’s Latest Developments in 2025

The year 2025 marks a pivotal moment for xAI. The company has seen exponential growth. Its valuation has reached hundreds of billions. Musk focuses on integrating AI with other platforms. Additionally, new collaborations with governments have emerged.

Meanwhile, the product Grok continues to evolve. Recent updates make it smarter. xAI also attracts significant investment. However, Musk often denies funding rumors. On the other hand, strategic acquisitions strengthen its position.

Acquisition of X by xAI

In March 2025, xAI acquired X in a stock transaction. The combined value hit $113 billion. Musk announced this on X, stating, “This combination will unlock massive potential.” The acquisition merged data and talent.

Analysts from The New York Times called it a smart move. X, as a digital town square, has 600 million users. Meanwhile, xAI brings advanced AI capabilities. This merger accelerates human progress.

Market reactions were positive. Related stocks rose. However, some experts worry about power concentration. On the other hand, Musk emphasizes the mission of seeking truth.

This acquisition aligns with Musk’s obsession. He wants a platform that drives knowledge.

Grok Updates and AI Innovation

Grok 4 launched in July 2025 as the smartest model yet. The x.ai website notes its real-time search capabilities. SuperGrok users can access it. Additionally, Grok 4 Fast debuted in September 2025.

These updates boost efficiency. Musk said Grok reached 64 million users. A staff meeting quote states, “We’re building AI that seeks truth.” Analysts from PYMNTS.com praised the innovation speed.

Meanwhile, xAI’s API aids developers. This opens new application possibilities. On the other hand, Grok Code Fast excels in agentic coding.

These innovations strengthen Musk’s obsession with understanding the universe.

Impact and Controversies of xAI

xAI has made a significant impact on the AI industry. It challenges giants like OpenAI. Musk pushes for an ethical approach. However, controversies are inevitable. Lawsuits and political deals draw attention.

Meanwhile, experts say xAI accelerates scientific progress. Government collaborations show its potential. On the other hand, privacy concerns arise.

Deal with the Trump Administration

In September 2025, xAI signed a deal with the Trump administration. It focuses on managing federal real estate. New York Post reported the details. Grok will assist federal agents.

Musk called it a step forward. However, critics from opposition groups raised concerns. They worry about Musk’s influence on government. Analysts from The Guardian assessed the risks.

Meanwhile, the deal expands xAI’s reach. It showcases Musk’s obsession with real-world AI applications. On the other hand, it boosts the company’s valuation.

Public reactions are mixed. Some support the efficiency, while others remain skeptical.

Lawsuit Against OpenAI

Musk accused OpenAI of stealing trade secrets in September 2025. The Guardian reported this new lawsuit. Musk claimed Altman violated the founding agreement. This continues their long-standing rivalry.

A quote from the lawsuit reads, “OpenAI pivoted to profit, ignoring humanity.” Analysts see it as a competitive strategy. Meanwhile, OpenAI denied the allegations.

This controversy highlights Musk’s obsession with responsible AI. On the other hand, it affects xAI’s image.

The lawsuit could shape future AI regulations.

Elon Musk’s obsession with xAI remains a key driver of innovation. The company continues to advance despite challenges. Readers can explore related articles on Olam News about SpaceX or Neuralink to dive deeper into Musk’s ecosystem.


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Samuel Berrit Olam

Samuel Berrit Olam is the founder of Olam Corpora, a multi-sector holding company overseeing Olam News and various business units in media, technology, and FMCG. He focuses on developing a sustainable business ecosystem with a global vision and local roots.

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