• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechAI

Elon Musk unveils A.I. startup with execs from DeepMind and Microsoft, with goal to ‘understand the true nature of the universe’

By
Rachel Metz
Rachel Metz
,
Sarah McBride
Sarah McBride
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Rachel Metz
Rachel Metz
,
Sarah McBride
Sarah McBride
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
July 12, 2023, 2:34 PM ET
Elon Musk
Tesla CEO Elon Musk.Chesnot/Getty Images

Elon Musk, who has hinted for months that he wants to build an alternative to the popular ChatGPT artificial intelligence chatbot, announced the formation of what he’s calling xAI, a company with a mission to “understand the true nature of the universe.” 

Recommended Video

On a website unveiled Wednesday, xAI said its team will be led by Musk and staffed by executives who have worked at a broad range of companies at the forefront of artificial intelligence, including Google’s DeepMind, Microsoft Corp. and Tesla Inc., as well as academic institutions such as the University of Toronto.

Musk was involved in the creation of OpenAI, the highest-profile AI startup and developer of ChatGPT. But he has frequently and publicly criticized OpenAI since he left the board in 2018, especially after it created a for-profit arm the following year. He has said he believes it to be “effectively controlled by Microsoft.” Microsoft has invested some $13 billion into OpenAI.

Despite his work in AI, Musk has expressed deep reservations about the technology. The billionaire was among a group of researchers and tech industry leaders who in March called for developers to pause the training of powerful AI models.

Of the 12 men, including Musk, listed on the website Wednesday morning, a majority previously worked at Google in some capacity, or at its London-based artificial intelligence unit, DeepMind. One, Christian Szegedy, spent years as a research scientist at the company. Other former Googlers are Igor Babuschkin, Zizhang Dai, Tony Wu and Toby Pohlen.

Musk’s startup has also added two academics from the University of Toronto, Guodong Zhang and Jimmy Ba, an assistant professor at who studied under AI pioneer Geoffrey Hinton. Both Ba and Zhang list a DeepMind internship on their CVs. 

Ba is one of the best known hires announced by xAI Wednesday. He is the co-author, with Diederik Kingma, of a 2014 paper on optimization in deep learning known as the “Adam” paper. It is the most-cited paper in artificial intelligence, with 95,460 citations, according to the scientific networking site ResearchGate.

Ba “has a unique brain,” said Deval Pandya, director of AI engineering at the Vector Institute, a Canadian nonprofit organization dedicated to AI research, where Ba also worked as a researcher. “He has achieved a lot of originality in methods compared to his peers,” Pandya said.

Ba is currently on leave from the university, according to computer science department chair, Eyal de Lara, and is also on leave from Vector, according to the institute’s website.  

Though Musk is a frequent critic of San Francisco, the xAI website says that the company is “actively recruiting experienced engineers and researchers” to work “in the Bay Area.” So far, most AI development has been concentrated in Silicon Valley. 

Musk and Jared Birchall, who operates Musk’s family office, incorporated a business called X.AI in March, according to a Nevada state filing with the Secretary of State. 

In April, the Financial Times reported that Musk was holding discussions with investors of his other companies, Tesla and Space Exploration Technologies Corp., about helping fund an AI startup, citing unidentified people familiar with the matter. The billionaire has acquired thousands of processors from Nvidia Corp. for the new project, the paper said.

The xAI website said the company is being advised by Dan Hendrycks, who is the director of the Center for AI Safety — a group that has warned about what it sees as existential dangers of developing AI quickly. This spring, it released a letter of caution signed by chief executive officers of some of the leading companies in AI, including Alphabet Inc.’s DeepMind and OpenAI.

Musk, 52, now oversees six companies: Tesla, SpaceX, Twitter, Neuralink, Boring Co. and now xAI. In regulatory filings, Tesla says the auto giant is “increasingly focused on products and services based on artificial intelligence, robotics and automation.” Tesla’s website invites people to help “build the future of artificial intelligence” with a variety of products, from the “Tesla Bot” known as Optimus to AI interface chips that will run the electric automaker’s automated driving software.

Musk has a long history of borrowing engineers from one company to help out at another, as the contours of his ever-expanding empire bleed into one another. Tesla and SpaceX share a vice president of materials engineering, for example, and engineers from Tesla “volunteered” to work at Twitter after Musk bought the company for $44 billion in October. 

The xAI website says that it is a “separate company from X Corp,” the parent company that Musk merged Twitter into earlier this year, but that it will “work closely with X (Twitter), Tesla, and other companies.”

Musk’s dramatic entrance into the AI world has attracted notice from existing companies.“Elon is one of the great entrepreneurs of our time,” said Reid Hoffman, co-founder of LinkedIn and of the startup Inflection AI. Hoffman, a former board member of OpenAI, said that Musk had the credentials to advance the development of the technology. 

In response to a question about the lack of women on the xAI founding team, Hoffman said it was important to have “inclusive voices” in the industry. He also criticized Musk’s call for a pause on AI development, which Musk signed onto before launching the company. 

“I look a little bit askance at signing a six month pause while you’re trying to accelerate your own effort,” Hoffman said.

–With assistance from Dana Hull, Sean O’Kane and Ed Ludlow.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Rachel Metz
See full bioRight Arrow Button Icon
By Sarah McBride
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Qualcomm CEO Cristiano Amon says 2026 is the year AI agents go mainstream—and the smartphone’s reign as your primary device is ending
AIFortune 500: Titans and Disruptors of Industry
Qualcomm CEO Cristiano Amon says 2026 is the year AI agents go mainstream—and the smartphone’s reign as your primary device is ending
By Fortune EditorsMay 10, 2026
8 hours ago
The global economy is experiencing the largest capex cycle ever, with nearly $5 trillion seen by the end of the decade—and it’s not all AI spending
EnergyAlternative energy
The global economy is experiencing the largest capex cycle ever, with nearly $5 trillion seen by the end of the decade—and it’s not all AI spending
By Jason MaMay 10, 2026
9 hours ago
AI wins have Alphabet poised to become world’s biggest company
AIAlphabet
AI wins have Alphabet poised to become world’s biggest company
By Ryan Vlastelica and BloombergMay 10, 2026
12 hours ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a ‘life advisor’—but college students might be one step ahead
TechOpenAI
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a ‘life advisor’—but college students might be one step ahead
By Sydney LakeMay 10, 2026
14 hours ago
Torsten Slok, wearing a suit, speaks on a stage with a gold and black background.
AILabor
‘The gains will be substantial’: The AI shock is looking a lot like the China shock, and a top economist says that’s actually good news
By Sasha RogelbergMay 10, 2026
16 hours ago
Young man working on laptop with headphones in modern coffeeshop
Future of Workskills gap
AI generated identical résumés for a man and a woman: Hers was more likely to be labeled ‘weak,’ while his got a 97% approval rating
By Eleanor PringleMay 10, 2026
18 hours ago

Most Popular

‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
14 hours ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
14 hours ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
2 days ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
2 days ago
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
Politics
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
By Jason MaMay 9, 2026
1 day ago
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
Commentary
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
By Steve H. HankeMay 10, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.