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Musk’s xAI Has Considered Buying Character.AI

XAI has considered an acquisition of chatbot maker Character as Elon Musk’s AI startup hunts for talent and more ways to test its AI models.

XAI founder Elon Musk. Photo by Marc Piasecki/Getty Images
By
Natasha Mascarenhas
[email protected]Profile and archive
,
Stephanie Palazzolo
[email protected]Profile and archive
and
Kalley Huang
[email protected]Profile and archive

XAI, Elon Musk’s one-year-old artificial intelligence startup, has considered acquiring chatbot maker Character.AI as it looks for more ways to test its Grok AI models, according to a person who spoke with xAI leadership about the deal.

The discussion may not result in a deal. But the internal debate at xAI points to the types of pairings that are likely to become more common as smaller AI startups such as Character face the steep costs of training and running their models while competing against deep-pocketed rivals.

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