Elon Musk’s xAI considers buying Character.ai- The Information

Investing.com-- Elon Musk’s xAI start-up is considering buying chatbot maker Character.ai as it seeks more ways to test its flagship artificial intelligence models, The Information reported on Wednesday.

xAI held internal discussions over a potential offer, and may not result in a deal, The Information report said, citing a source that spoke with xAI management over the deal.

Character.ai allows users to develop chatbots that are capable of generating human-like text responses and can hold conversations. The company was founded by former Google (NASDAQ:GOOGL) engineers Noam Shazeer and Daniel De Freitas. 

Musk formed xAI in 2023, joining a slew of major technology companies as they raced to roll out their own AI offerings after the launch of ChatGPT. 

xAI’s flagship model, Grok, is accessible on the social media platform X, formerly known as Twitter, which Musk had bought in 2022. Musk had said X would own about 25% of xAI. 

In July, Musk had asked his X followers whether Tesla Inc (NASDAQ:TSLA) should invest $5 billion in xAI. He had also flagged a potential integration of xAI technology into Tesla’s self-driving features.