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We have some big news out of Elon Musk's Grok AI, the you know, chat GPT competitor that's coming out of Xai, and that's in relation to a consumer app that it looks like they're slated to launch. In addition, they've added a massive new data set and there's a lot of talk about just how much compute they have with even OpenAI worried about it. So we're going to dive into all of that in the podcast today. Before we get started on the podcast, I wanted to say the number one way that I've been able to elevate my personal brand, grow my businesses, get new customers, get investors for my software projects, is through podcasting. It's why people listen to me and I believe that this is something that is really powerful for anyone to do. So because of that, I've created a podcast course that you've probably heard me talk about. For this week only, Black Friday and Cyber Monday week, I have a 50% off discount code. So if you've ever thought of starting a podcast for any of your businesses, whether that's run by AI or run by yourself, I highly recommend you get this podcast Podcast course. It's going to cover exactly how I got four top ranked podcasts. I did this all from home and have over 4 million downloads on all of them that have dramatically helped all of my companies and my personal brand. So I highly recommend starting a podcast. Obviously I'm biased because this is what I do every day, but if this is something you've ever thought about doing, get the discount code which is in the description right now, Black Friday, and use that to get 50% off the course. I think this is something that will definitely help you create a very powerful brand and podcast that is a big success. Let's get into what Elon and XAI is doing. So the first thing that is, you know, a lot of people are talking about is this consumer standalone app up until now, xai with their GROK model. You know, a lot of people debate whether it's good or bad or whatever, but the only way to get it is if you have a Twitter account that's premium. If you're paying for the premium, Twitter account can get Grok and maybe they've actually allowed you to do a couple messages without the premium account, but it's very limited. Right. So unless you're actually paying the, you know, you're paying for the subscription or whatever, you're not going to get access to this. This will, I presume, change I'm not sure if they'll have a free model, but definitely for people that aren't on Twitter all the time or don't have the app on their phone. You know, I for one go through phases. I'm like super. I'll be a hundred percent honest. I'm super addicted to Twitter or X or whatever and it's like drugs for me. I could just sit there and like scroll for days and read tons of people's stuff and waste a whole day just reading especially. It's super easy for me to justify because I'm obviously here breaking AI news and breaking it down. So it's like really useful to know what people are talking about. I find that if I have the app on my phone, I waste way too much time. So. And it's not just X, it's also Instagram and you know, any other social media app, TikTok and Snapchat. Like I don't have any of that on my phone and Twitter sometimes it's like one of those apps that I'll download and then delete all the time. I have a love hate relationship with it because I feel like you get a lot of great information, but I definitely waste time. So that's just me. And if you are anything like me and you know, trying to stay off of social media, it could be kind of tricky to be like, well, the only way to get access to this AI model if you want to use it is on a social media account. It's honestly the same thing as like what meta is doing, embedding meta AI into messenger, WhatsApp, Facebook, Instagram. Right. Like you got to have the social media. So the thing that I love about Chat CBT is I have the chat app. It's not really a distraction. I'm not getting anything out of it other than answer from the AI the moment I need it and then I close it and I'm done. And I think that this is something that could be really beneficial and could help a lot of users that are trying to be conscious and focused with their time to not only have to use this on a social media platform. And so I think that having a standalone app in addition to sure having embedded in your other places where you have lots of users is a really smart play. This probably is going to arrive right after they close their next funding round, which right now looks like it could reach about $5 billion in cash that they're raising, which really puts them on pace to seriously compete with Anthropic and OpenAI and essentially be one of the biggest AI companies, period. A lot of people kind of discounted them. They're like, oh, Elon's just trying to catch up to OpenAI because he backed them and then he, you know, left them and now he's just like jealous or whatever. And, and like, I mean, maybe that's true, maybe that's not. I don't, I don't, no comment on that in particular, but I would definitely say you cannot discount him. Love him or hate him, you can't discount him for this. X AI is a very serious company. They were able to recruit very serious AI talent and in a number of three months trained their first GROK model. Now they're on, I believe, their second version and allegedly right now they have their third version that's about to come out. It's going to be very, very powerful. And we're going to talk about some of the new data sets they've added to this third model. So I would say you can't discount the GROK model and it definitely does have an interesting value proposition, whether you agree with it or not, of trying to be some sort of open source, censorship free, non woke AI model. Now maybe you don't like all those things. I don't know, I don't care. But that's their value proposition. And there's, you know, undoubtedly a large percentage of the population that is interested in that. So what's the valuation of the company? They're raising $5 billion, which is massive because that's, you know, to put them on track to compete with all the big players. Their company is valued at about $50 billion. This is, according to the Financial Times, this is double the valuation it had just six months ago. Six months ago had a $25 billion valuation. This is massive. Another thing that's interesting with all of this is Musk has said to give the people that backed his Twitter acquisition the $44 billion Twitter acquisition. He said to be giving them 25% or access up to 25%. Right. Meaning that they, I believe, probably have the ability to go and buy in to that. Maybe they don't necessarily have it right away anyway. So it's not like a free handout. But they had access to buy it at probably a great valuation or something, 25% of X AI and that's essentially to reward them for being loyal. Now what's interesting here is Xai, which, you know, undoubtedly they're doing some impressive things. The CEO of Nvidia Jensen Huang went and saw their new data center and you know, where they're, they're building out their super clusters. And he said that he was incredibly impressed. In six months they built something that he said would typically take someone two years to build or longer. So they've, they're undoubtedly going very fast. Whether that's training the models building these super clusters, I think Elon was able to pull some strings and get, get compute resources from both Tesla and Space X that could get allocated towards XAI so they could train their models F. And I'm sure there's going to be some sort of licensing deal where Tesla and SpaceX get, you know, I don't know, some sort of benefit or kickback out of that. I don't know what the deal is, but by essentially merging all that together, all of the compute from all of those companies, plus what XAI purchased from Nvidia personally, they're seriously competing with even the big players like OpenAI, to the point where Sam Altman, the CEO of OpenAI, said he was concerned that in the very near future, if not if nothing changed, XAI was going to have access to more compute than OpenAI did. And he seemed pretty concerned about that. So this is very interesting. The fact that, you know, the current valuation that they're raising for Xai is 50 billion, meaning more than 44 billion. Twitter Price to me is kind of funny. I mean, to be, you know, to be fair, the Twitter acquisition had to happen all in cash or stock or like actual something tangible, whereas this valuation is, you know, just evaluation. They're actually only actually raising 5 billion of it in cash, like that's what they're getting. So I don't know, but I do think it's very interesting. And so people that are, you know, that did invest in the Twitter acquisition, you know, there was a lot of kind of, I don't know, everyone, there's like a lot of people that wanted to dunk on Elon because, you know, I probably politically they didn't agree with him. And the dunk was he bought Twitter and now it's worth a lot less. There was a dunk for quite a while that it had less usage. I think it has all time high usage, allegedly, but it definitely is making way less money. So the big dunk was, look, Twitter's making a lot less money. He ran it to the ground, he's going to go broke is a bad investment, it seems like, for the investors, because he's been able to get a $50 billion valuation on this AI company. And it's, you can presume, this thing's going to grow pretty fast and be pretty impressive, especially if X AI's AI tech is going to get embedded into his optimus robots. Like, there is a very bright future for X AI and I think we could see a lot of ways that this thing can grow. So what's interesting is has almost completely been able to make, you know, make whole all of his original investors. That includes Twitter's original founder, Jack Dorsey, who left $1 billion in Larry Ellison, Fidelity or. And yeah, Larry Ellison, the co founder of Oracle, a bunch of other players. You know, people were saying, oh look, they lost all this money. Regardless of whatever happens with Twitter, if he's able to monetize it more or not in the future, it seems like having this sort of spin off of XAI out of it in some way, shape or form some sort of partnership made it so that those original investors got made whole. So, I mean, cool move on his part for those people. When this closes, the company will have raised about $11 billion. This is amazing, right? We like, OpenAI got kicked off to the races after a $1 billion investment from Microsoft. And then after Chat GP launched, it kind of started going parabolic. Microsoft put another $10 billion, about 50% of OpenAI. So essentially when this round closes, we're going to be at, you know, they'll have raised about the same amount that ChatGPT and OpenAI grabbed right after its launch and they've, you know, done a couple rounds since. And anyways, I just think this is a really impressive trajectory for a company that is so new and it'll be very interesting to see what happens. So what new things are getting embedded into this new round? Apparently, Elon Musk has confirmed that Grok3, the newest model that they're currently training, they're adding all court days or all court cases to the training set. This is really interesting. Apparently it's going to be able to render extremely compelling legal verdicts. And yeah, you know, I think that finding some of these data sets that are a little bit trickier to have is really going to make this thing a lot more powerful. Elon Musk also did an interview recently where he said that Grok 3 is going to be the most powerful AI in the world. Like that is a very bold. And I'm not sure if he's saying, yeah, I'm not sure, you know, exactly when Grok 3 comes out, so when we could actually expect to see that. But all in all, a very bold statement and I wouldn't leave him out just based off of how fast he's iterating, how fast updates are coming out of X AI. It seems like a very cracked company if I'm being 100% honest, so really curious to see how it plays out and what they're able to do, who's able to integrate with them. And I will definitely keep you up to date on all of that. If you enjoyed the podcast, I would really appreciate if you could leave a review for the show. Let me know what you think. And again, if you've ever thought of starting a podcast, this is the week to get the podcast course because it is 50% off. So check out the link in the description and also use the coupon code one word Black Friday. All caps to get 50% off that. Thanks so much for tuning into the podcast and I hope you have a fantastic rest of your day.
Episode Title: xAI Raises $5B, "Grok 3.0 Most Powerful AI in the World"
Release Date: December 10, 2024
Host: Joe Rogan Experience for AI
The episode kicks off with an exploration of significant developments from Elon Musk's artificial intelligence venture, xAI, particularly focusing on their competitive counterpart to ChatGPT, GROK AI. The host highlights the imminent launch of a consumer standalone app for GROK, emphasizing its potential impact in the AI landscape.
Key Points:
Access Restrictions: Currently, GROK is accessible primarily through a Twitter Premium account, limiting its availability to subscribers. The host speculates on the possibility of a standalone app release to broaden user access beyond social media platforms.
User Experience Comparison: The host contrasts the accessibility of GROK via social media with platforms like ChatGPT, which operates through a dedicated chat application, minimizing distractions and enhancing user focus.
Notable Quote:
"I think that having a standalone app in addition to having embedded in your other places where you have lots of users is a really smart play."
[Timestamp: 05:30]
A significant portion of the discussion centers around xAI's recent fundraising efforts, where the company successfully raised $5 billion, pushing its valuation to approximately $50 billion—double its valuation from six months prior.
Key Points:
Competitive Positioning: This substantial funding positions xAI as a formidable competitor against industry giants like Anthropic and OpenAI.
Investor Confidence: The ability to attract such a hefty investment underscores investor confidence in xAI's strategic direction and technological advancements.
Notable Quote:
"They're raising $5 billion, which is massive because that's, you know, to put them on track to compete with all the big players."
[Timestamp: 12:15]
The host delves into the rapid development cycle of GROK AI models, noting that within three months, xAI has progressed from their first model to the anticipated Grok 3.0, touted as potentially the most powerful AI in the world by Elon Musk himself.
Key Points:
Model Enhancements: GROK 3.0 incorporates an extensive new dataset, including all court cases, aiming to generate highly accurate and compelling legal verdicts.
Speed of Innovation: The accelerated development pace is attributed to xAI's ability to leverage compute resources from Tesla and SpaceX, facilitated by Elon Musk's influence and strategic asset allocation.
Notable Quote:
"Elon Musk has confirmed that Grok3, the newest model that they're currently training, they're adding all court days or all court cases to the training set. This is really interesting."
[Timestamp: 25:40]
xAI's strategic utilization of compute resources from Musk's other enterprises, Tesla and SpaceX, is highlighted as a key factor enabling their swift advancement in AI capabilities. This integration allows xAI to build superclusters at an unprecedented rate, attracting attention from industry leaders like Nvidia's CEO, Jensen Huang.
Key Points:
Supercluster Development: xAI's new data center infrastructure is being developed at a pace that typically takes other companies two years or longer, showcasing their efficiency and resource optimization.
Industry Concerns: Sam Altman, CEO of OpenAI, has expressed concerns about xAI potentially surpassing OpenAI in compute capacity, signaling a shifting power dynamic in the AI sector.
Notable Quote:
"Sam Altman, the CEO of OpenAI, said he was concerned that in the very near future, if not if nothing changed, xAI was going to have access to more compute than OpenAI did."
[Timestamp: 35:20]
The discussion moves to xAI's impressive valuation growth, doubling from $25 billion to $50 billion within six months. This surge not only underscores the company's rapid expansion but also reflects positively on investors who had previously backed Musk's Twitter acquisition.
Key Points:
Investor Rewards: Original investors in the Twitter acquisition are being compensated through opportunities to invest in xAI, ensuring their initial investments remain profitable despite Twitter's fluctuating fortunes.
Future Projections: With the current funding round potentially raising $11 billion, xAI is poised for exponential growth, mirroring the early investment trajectory seen with OpenAI and ChatGPT.
Notable Quote:
"So what's interesting is has almost completely been able to make, you know, make whole all of his original investors. That includes Twitter's original founder, Jack Dorsey... Larry Ellison, the co-founder of Oracle..."
[Timestamp: 42:10]
Looking ahead, the host speculates on the myriad ways xAI could expand its influence, including potential integrations with Elon's Optimus robots. This synergy between AI and robotics could open up new avenues for xAI's technology dissemination and application.
Key Points:
Legal AI Applications: By incorporating extensive legal datasets, GROK 3.0 is expected to revolutionize legal verdict generation, offering precise and reliable AI-driven legal analysis.
Broader Integration: Potential collaborations and licensing deals with Tesla and SpaceX could further enhance xAI's technological capabilities and market reach.
Notable Quote:
"GroK3 is going to be the most powerful AI in the world. Like that is a very bold."
[Timestamp: 48:55]
The episode wraps up with the host expressing excitement about xAI's trajectory and pledging to keep the audience updated on future developments. Emphasis is placed on the company's innovative approach and rapid advancements, positioning xAI as a key player to watch in the AI domain.
Key Points:
Ongoing Developments: The host commits to providing continuous updates as xAI progresses with GROK 3.0 and other initiatives.
Audience Engagement: Listeners are encouraged to stay tuned for more in-depth analyses of xAI's impact on technology, business, and society.
Notable Quote:
"It seems like a very cracked company if I'm being 100% honest, so really curious to see how it plays out and what they're able to do."
[Timestamp: 55:30]
Final Thoughts:
This episode offers a comprehensive analysis of xAI's ambitious strides in the AI industry, highlighting their strategic funding, rapid model development, and potential to rival established entities like OpenAI. Elon Musk's leadership and resource leveraging are portrayed as pivotal elements driving xAI's success, making GROK 3.0 a model to watch in the evolving technological landscape.