Tesla CEO Elon Musk is planning to launch a man-made intelligence start-up that will go head-to-head with OpenAI, the Monetary Instances reported Friday.

Musk, the CEO of Tesla, SpaceX and Twitter, has been constructing a staff of researchers and engineers, and has been in dialog with a number of buyers, the Monetary Instances reported, citing sources aware of the matter. He has additionally reportedly been recruiting from different high AI corporations, together with Alphabet-owned DeepMind.

“It is actual and they’re enthusiastic about it,” a supply aware of the matter informed the Monetary Instances.

Musk has secured 1000’s of NVIDIA GPU processors, in keeping with the report. These chips are an integral a part of constructing a big language mannequin, or LLM, to compete with OpenAI’s GPT. Musk mentioned he was buying the processors for his firms in a Twitter Areas interview with the BBC this week.

“It looks as if everybody and their canine is shopping for GPUs at this level,” Musk mentioned. “Twitter and Tesla are actually shopping for GPUs.”

Musk was as soon as a significant monetary backer at OpenAI, committing $1 billion over a number of years, in keeping with an earlier report from Semafor. However Musk backed out of his monetary and operational commitments to the unreal intelligence agency on the similar time OpenAI added a for-profit enterprise phase. Microsoft invested $1 billion in OpenAI shortly after Musk ruptured with the group and, earlier this yr, dedicated to a brand new multi-billion greenback funding.

Musk has publicly questioned ChatGPT-creator OpenAI’s method. In March, Musk signed an open letter calling for a right away, six-month-long halt on any analysis on AI fashions extra superior than OpenAI’s GPT-4. He has mentioned AI is “one of many greatest dangers to the way forward for civilization.”

Musk’s reported enterprise might develop into the newest entrant to an more and more crowded area. Past Microsoft and Google, Amazon introduced it is coming into the generative AI area on Thursday.

Musk didn’t instantly return CNBC’s request for remark.

Learn extra on the Monetary Instances.