Two former OpenAI employees and multiple AI safety nonprofits warned that xAI could become an investor liability for SpaceX as it prepares for a very large IPO. They cited “unpriced risks” tied to xAI that could complicate investor perceptions of the combined company. The warning points to xAI’s safety record and argues that it may increase the likelihood of regulation and litigation compared with other frontier AI developers. The letter urges SpaceX to disclose whether xAI plans to keep developing frontier AI models. It also notes that a GPU capacity deal with Anthropic leaves uncertainty about xAI’s future model development plans.
"Two former OpenAI employees and a group of AI safety nonprofits are warning that Elon Musk's AI lab, xAI, could become a liability for prospective investors in SpaceX, which is preparing to file what's expected to be the largest initial public offering in Wall Street History."
"In a letter directed to investors published on Tuesday, the ex-staffers highlighted what they describe as "unpriced risks" related to xAI that could complicate SpaceX's reported plans to raise up to $75 billion as part of its IPO. The rocket company's private valuation shot up to over $1 trillion after it acquired xAI last year."
"Hedley tells WIRED in an interview that he believes xAI has the worst safety practices "nearly across the board" compared to other frontier AI developers, including OpenAI, Google DeepMind, and Anthropic. As a result, he argues, SpaceX may face a greater risk of regulation and litigation than other AI labs."
"The letter's authors argue that SpaceX should make several disclosures to investors, including whether xAI intends to continue developing frontier AI models. SpaceX recently struck a deal to sell a significant portion of its GPU capacity to Anthropic, and the letter claims the agreement "leaves it unclear whether xAI is still a front"
Read at WIRED
Unable to calculate read time
Collection
[
|
...
]