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I was confused when xAI was started as a separate company. Twitter had the data, the delivery surface, the user base. I wondered why a separate entity was creat
by zoogeny 2y ago
I was confused when xAI was started as a separate company. Twitter had the data, the delivery surface, the user base. I wondered why a separate entity was created to house the AI part.
I should have had a clue because I was talking to a CEO of a startup and trying to encourage him to invest dev time in AI features. He was reluctant even though he was optimistic about AI. He had too many things to work on, not enough resources. I suggested he raise more capital. He pointed out that raising capital in an older startup would mean people scrutinize your revenue growth. He would be able to raise more money at a better valuation for a completely new AI business than he could possibly raise to inject cash into his existing traditional startup.
So this makes sense of my initial confusion. I am just surprised it happened so fast.
Marc Andreessen made headlines a few months ago during the campaign about some shadowy meeting he was brought in about AI. He claimed the government told him they had picked a few winners of the AI race and no new foundational startups would be allowed to compete. Everyone has been talking about a "Manhattan project" like push for AGI to make sure the US gets it before anyone else. Given how quickly xAI has risen, given it's access to massive GPU resources, I can't help but reach for my tinfoil hat here. A platform with the reach of X/Twitter combined with an AI is a technocratic wet dream.