• 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

hollywood
CommentaryMarketing
I spent 20 years learning to navigate an industry. Then I built a campaign for the man who’s dismantling it
By Matti YahavApril 29, 2026
2 hours ago
Current price of Ethereum for April 29, 2026
Personal FinanceEthereum
Current price of Ethereum for April 29, 2026
By Joseph HostetlerApril 29, 2026
2 hours ago
An excavator works to clear rubble after the East Wing of the White House was demolished on October 23, 2025 in Washington, DC. The demolition is part of U.S. President Donald Trump's plan to build a multimillion-dollar ballroom on the eastern side of the White House.
PoliticsWhite House
Meet all 37 White House ballroom donors funding the $400 million build, including Silicon Valley tech giants, crypto bros and the Lutnicks
By Nino Paoli and Fortune EditorsApril 29, 2026
3 hours ago
gen z
Commentarydisruption
AI won’t kill your job — it will kill the path to your first one
By Jeffrey Sonnenfeld, Stephen Henriques, Johan Griesel, Andrew Alam-Nist and Peter YuApril 29, 2026
3 hours ago
Christina Cacioppo poses while sitting down in a suit jacket
NewslettersTerm Sheet
Exclusive: Vanta hits $300 million ARR as ‘shadow AI’ explodes across corporate America
By Lily Mae LazarusApril 29, 2026
5 hours ago
Tariff-proof pay: How boardrooms quietly made sure Trump’s trade war stopped at the CEO’s door
Big TechMarkets
Tariff-proof pay: How boardrooms quietly made sure Trump’s trade war stopped at the CEO’s door
By Jim EdwardsApril 29, 2026
5 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
2 days ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
1 day ago
The U.S. military may have already used up half of its most expensive missiles, and it could take up to 4 years to rebuild its stockpiles
Politics
The U.S. military may have already used up half of its most expensive missiles, and it could take up to 4 years to rebuild its stockpiles
By Sasha RogelbergApril 24, 2026
5 days ago
Current price of gold as of April 28, 2026
Personal Finance
Current price of gold as of April 28, 2026
By Danny BakstApril 28, 2026
1 day ago
'Take the money and run': Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
Energy
'Take the money and run': Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
By Shawn TullyApril 29, 2026
8 hours ago
Current price of silver as of Tuesday, April 28, 2026
Personal Finance
Current price of silver as of Tuesday, April 28, 2026
By Joseph HostetlerApril 28, 2026
1 day 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.