Elon Musk Joins AI Arms Race with New Company X.ai

Elon Musk unveiled X.ai, an AI company aiming to understand the universe. This represents a new player in the AI arms race.

X.ai has hired researchers who previously worked at OpenAI, Google, Microsoft, and DeepMind. The company is building TruthGPT, an unrestricted chatbot.

ChatGPT's popularity has required massive investments in infrastructure from Microsoft. Reducing latency is key for AI products.

Musk understands that winning the AI race will require billions in infrastructure spending. X.ai has already purchased thousands of Nvidia GPUs.

Investors should focus on companies like Arista Networks that produce the networking equipment needed for low latency AI systems.