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Musk denies rumors: xAI is not considering acquiring AI startup Character AI

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On Wednesday, media reported that xAI, owned by the world's richest man Elon Musk, has discussed acquiring the AI chatbot startup Character AI。 But Musk quickly denied the report.
Musk released a statement on X on the same day, stating that his artificial intelligence startup xAI is not considering acquiring Character AI。
Previously, media reports quoted sources as saying that xAI is considering acquiring Character AI, Because the company is looking for more ways to test its Grok AI model.
Sources pointed out that xAI has had internal discussions on a potential acquisition offer, but a deal may not be reached immediately.
Musk founded xAI in 2023 and joined the tech giant's AI arms race. Grok is xAI's first and flagship product. This is a chatbot that benchmarks against ChatGPT.
Musk has stated that Grok aims to be a fair and easy conversationalist. We want to strive to become the most interesting artificial intelligence, "he said.
Character AI was founded by former Google employees Noam Shazeer and Daniel De Freitas in 2021. Shazeer is a co-author of a groundbreaking paper on generative artificial intelligence, which has made him a celebrity in the artificial intelligence industry.
Character One of the most striking features of AI is allowing users to create and customize various virtual characters. Anyone can create their own custom chatbot, which can role play anyone and anything - alive, dead, or imagined. Users can communicate and converse with anime characters, celebrities, and even custom characters.
In May of this year, xAI announced a Series B funding of $6 billion, valued at over $24 billion. And the character AI was valued at over $5 billion after a new round of financing in September last year.
Last month, Musk launched a vote on X asking fans whether Tesla should invest $5 billion in xAI. He also proposed the possibility of integrating xAI technology into Tesla's autonomous driving capabilities.
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