AI This Week

Thinking Machines Lab, a promising artificial intelligence company, has raised $2 billion in seed funding, setting a new record and valuing the firm at $12 billion. Spearheaded by former OpenAI CTO Mira Murati, the company’s leadership includes ex-OpenAI experts who contributed to projects like ChatGPT and AI safety. Backed by major investors such as Andreessen Horowitz, Nvidia, and AMD, the funding highlights the fierce competition in advancing AI technologies. Thinking Machines plans to develop multimodal AI capable of interacting with humans through conversation and vision, with its first product launch expected in the coming months. With an open-source focus and ambitious research goals, the company aims to impact both developers and the AI community.

The U.S. Department of Defense awarded contracts worth up to $200 million to four leading AI companies — Anthropic, Google, OpenAI, and xAI — to enhance its artificial intelligence capabilities. According to the DoD, this investment aims to tackle pressing national security priorities using advanced AI systems. Each company will develop AI agents for particular defense missions.

Elon Musk’s xAI introduced “Grok for Government,” granting U.S. agencies access to its AI models. OpenAI, previously awarded a similar contract, continues its role in deploying AI solutions for defense purposes. The initiative reflects the DoD’s shift toward adopting cutting-edge AI to strengthen strategic military advantages.

Elon Musk’s AI company, xAI, is reportedly preparing for a new fundraising round that could value the firm between $170 billion and $200 billion, according to sources cited by the Financial Times. Saudi Arabia’s Public Investment Fund (PIF) is expected to play a significant role in the deal, partly through its indirect stake in xAI. Earlier, xAI secured $5 billion in both debt financing and strategic equity investment to scale its infrastructure, including data centers. Musk launched xAI in July 2023 as a competitor to OpenAI’s ChatGPT. The startup has ambitious plans, forecasting annual earnings of over $13 billion by 2029.

OpenAI is set to shake up the tech world with its upcoming release of an AI-powered web browser aimed directly at challenging Google Chrome’s dominance. Built on Google’s open-source Chromium code, the browser promises to reimagine how users navigate the web by integrating AI agents capable of performing tasks like making reservations or filling out forms. With its vast ChatGPT user base, OpenAI is positioning the browser to capture critical user data — a foundation of Alphabet’s successful ad ecosystem. This development could intensify the competitive landscape, as rivals like Perplexity and Brave also introduce AI-augmented browsing tools.

Tesla CEO Elon Musk has announced that Grok AI will be available in Tesla vehicles “at the latest” next week. This news comes shortly after Musk’s AI startup xAI launched Grok 4, their latest AI model. There’s been recent controversy surrounding Grok’s social media posts, which were removed after complaints about inappropriate content. The integration of Grok AI into Tesla vehicles marks a significant step in combining artificial intelligence with automotive technology.