Elon Musk's New ChatGPT Competitor Boosts AI-Related Crypto Tokens

Tokens such as AGIX and FET saw modest bump after Musk announced new Artificial Intelligence (AI) company "xAI" to take on ChatGPT.

AccessTimeIconJul 12, 2023 at 5:13 p.m. UTC
Updated Jul 13, 2023 at 3:03 p.m. UTC

Crypto tokens that are related to Artificial intelligence (AI) rose more than 3% on Wednesday, after Tesla and SpaceX CEO Elon Musk unveiled a new AI company called xAI, as an alternative to popular chatbot ChatGPT.

Tokens such as SingularityNET (AGIX) rose more than 6% while Fetch.ai (FET) climbed about 3% after the announcement of the new company with a goal to "understand the true nature of the universe." The team will be led by Musk and includes members that have previously worked at DeepMind, OpenAI, Google Research, Microsoft Research, Tesla, and the University of Toronto, according to the company website.

The newly formed company will be a separate entity from Musk's X Corp. but xAI said it will work closely with his other companies. xAI will host Twitter Spaces chat on Friday, July 14th.

Elon Musk previously have said that he is looking to create TruthGPT as an alternative to ChatGPT and will be "maximum truth-seeking AI that tries to understand the nature of the universe," according to an interview with Fox News.

The AI-related crypto tokens have gotten a short-lived boost earlier this year by due to the technology's increasingly mainstream appeal and after chipmaker Nvidia (NVDA) revealed its bullish outlook for AI sales.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.