• Elon MuskxAI is reportedly close to unveiling a chatbot application similar to OpenAI’s ChatGPT.
• The app could arrive as early as December, the Wall Street Journal reported.
• This would be another sign that Musk and xAI want to directly challenge OpenAI.

Elon Musk’s xAI is reportedly planning an app that could expand the reach of its chatbot to a much wider audience and support ChatGPT.

xAI could launch the chatbot application as early as December, on The Wall Street Journal reported Wednesday. The company did not immediately respond to a request for comment from Business Insider.

The app, if it materializes, would be another sign that xAI and Musk are trying to take on the creator of ChatGPT. OpenAI. Musk co-founded OpenAI but left the company in 2018. He has sued OpenAI and its co-founder and CEO Sam Altman twice, most recently alleging that he was “misled” into co-founding the company.

Musk founded xAI last year. Since then, the company has provided services to its other businesses, such as AI customer support for Star link and Grok, a chatbot only available to paid subscribers of X, the social network formerly known as Twitter that Elon Musk acquired in 2022. A chatbot app would be its first product offered directly to consumers.

xAI valuation has reached $50 billion, the Journal reported earlier this month. The artificial intelligence startup is now worth more than the $44 billion Musk paid to acquire X.

Investors who backed Musk’s acquisition of Twitter have recorded paper losses since the transaction. Wednesday, the Financial Times reported that Musk gave a quarter of xAI’s shares to these investors, a move that could offset these losses.

xAI’s valuation is still lower than OpenAI, which was last valued at $157 billion during its latest funding round in October. It also generates less revenue. xAI is “on track to exceed $100 million annually,” the Journal reported Wednesday. OpenAI, meanwhile, expects revenue of $3.7 billion in 2024, the Journal reported earlier.