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The Wall Street Journal and the Financial Times reported that Musk has started a new AI firm called X.AI Corp.
Developing artificial intelligence is nothing new for Musk. Together with the company's current CEO, Sam Altman, he co-founded and chaired OpenAI in 2015.
The revelation came after information surfaced that Musk is assembling a team of AI researchers and engineers, according to The FT.
Musk incorporated a company named X.AI on March 9, according to Nevada business records.
He is the company's only director, its secretary is listed as Jared Birchall, the ex-Morgan Stanley banker who manages Musk's wealth.
Musk recently changed the name of Twitter to X Corp in company filings, as part of his plans to create an "everything app" under the brand "X".
The report suggests that Musk is in talks with existing SpaceX and Tesla investors regarding investments in the upcoming AI venture.
"A bunch of people are investing in it… it's real and they are excited about it," added FT's source.