New reporting today from our very own David Faber that Elon Musk's X AI just hit a fresh eyepopping valuation. David joins us now on the CNBC news line. David, >> yeah Leslie, as we reported earlier, uh XAI, of course, the AI company controlled by Elon Musk is in the midst of another raise of capital.this for $10 billion that will bring its post money valuation to some 200 billion according to people who are familiar with the efforts that are underway. Amongst uh what I'm told is a an investor group may als ...

AI Model Development & Releases - Microsoft released its first in-house AI models, MAI Voice 1 and MAI1 preview, with MAI Voice 1 generating a minute of audio in less than 1 second on a single GPU [4] - Microsoft's MAI1 preview debuted at number 13 on the LM Marina benchmark, below Grok 3 Preview [5] - Hunan, a Chinese company, released Hunan Video Folly, an open-source text-to-video-to-audio framework trained on a 100,000-hour multimodal dataset [17][18] - Microsoft published a paper on RSR 2 agent, a 14 billion parameter model that outperformed a 671 billion parameter model in math reasoning [21] - Korea AI released a real-time video generation model [22] Legal & Ethical Considerations - Elon Musk and XAI are suing a former employee for allegedly stealing confidential information and going to OpenAI [1] - Chinese social media companies are rolling out labels for AI-generated content to comply with new regulations [24] - Anthropic is updating its data retention policy to 5 years and will train models on user chat transcripts, with users able to opt out by September 28th [13][14] Corporate Developments & Investments - Anthropic raised $13 billion in a Series F funding round, valuing the company at $183 billion [10] - Anthropic's run rate revenue grew from approximately $1 billion at the beginning of 2025 to $5 billion by August [12] - OpenAI acquired Statsig for $1.1 billion in an all-stock deal [34][35] AI Applications & Features - Figure robot can now do dishes, showcasing advancements in robotics [14][15] - Chat GPT is rolling out new features to help people in need and parents, including mental health crisis interventions and parental controls [30][33] - AI can detect covert voluntary facial responses in coma patients earlier and more often than clinicians [26] Market Dynamics & Competition - Google avoided being broken up in its antitrust case, causing its stock to increase by 9% [15] - Elon Musk posted a graph showing Grok code usage increased 60% higher than Claude Sonnet on Open Router, but Grok code is essentially free [27][28] - Waymo is expanding to Seattle and Denver [36]

Antitrust Allegations & Legal Actions - XAI, Elon Musk's AI startup, is suing Apple and OpenAI for alleged antitrust violations, claiming they colluded to dominate the AI assistant market [2] - The lawsuit alleges Apple manipulates App Store rankings to disadvantage AI chatbots competing with OpenAI's ChatGPT, giving OpenAI an unfair advantage [3] - Musk seeks billions of dollars in damages and a court order to halt the alleged anti-competitive practices [3] - The core issue extends beyond app store rankings to the future of search, particularly concerning Google's default search engine status on Apple devices [4] AI Market Dynamics & Competition - OpenAI's search market share has reportedly doubled in the last 6 months [4] - Musk aims to ensure Grock, XAI's AI offering, remains relevant in the AI conversation [5] - Musk co-founded OpenAI with Altman 10 years ago but left due to disagreements over its direction, later launching XAI in 2023 to compete [5] XAI's Corporate Structure & Evolution - XAI was initially founded as a public benefit corporation legally obligated to comply with the public good, but it quietly lost that status last year [6] - OpenAI is restructuring into a public benefit corporation to comply with stipulations of a SoftBank-led $40 billion fundraising [7]

The Dow up about 210 points. We have a news alert right now on Elon Musk's XAI. Mackenzie Sagalos has those details for us.McKenzie, what are you learning. So, Contessa, Elon Musk is taking on Apple and Open AI in court. His AI company XAI just sued both tech giants in federal court, alleging that they've colluded to freeze out competition.Now, the complaint, which was filed this morning in Texas, claims that Apple's exclusive integration of Chat GBT into iPhones is an illegal antirust scheme that blocks ou ...

AI Ethics & Child Safety - The AI tool "Annie," released as part of Elon Musk's Grok, raises concerns about potential inappropriate interactions, especially with children [1][2][3][4] - There are worries about children, particularly lonely 12-year-old boys, accessing AI characters like Annie and forming unhealthy relationships [4] - The industry expresses horror at the potential for AI to expose children to inappropriate content [1][4] - The industry is concerned about the lack of parental supervision of children's devices and the potential for exposure to harmful content [6] Impact on Youth & Society - The industry acknowledges the growing trend of people falling in love with and forming relationships with AIs [3][4] - The speaker suggests that young people need to be aware of the potential for manipulation by AI for financial gain [4] - Child psychiatrists are seeing an increase in pornography consumption among young children, including 8-year-old boys [1][6] - The industry highlights the impact of pornography on children's dopamine levels and brain wiring [6] Concerns about AI Development - The speaker questions the motives behind releasing a sexually suggestive AI character like Annie as one of the first interactions with the AI tool [5] - The speaker expresses disapproval of the design and presentation of the AI character, finding it distracting and inappropriate [5]

Legal & Regulatory Risks - Potential lawsuit from Elon Musk poses a significant headache and headwind for Apple, especially given existing regulatory scrutiny [1] - Musk's involvement could escalate the situation and influence other parties, amplifying antitrust concerns for Apple [3] - Apple's stock experienced a pullback of approximately 05% in pre-market trading due to the potential legal action [4] App Store Importance & Dynamics - App Store placement is crucial for the success and adoption of Grok and X, described as their "hearts and lungs" and "lifeline" [5][6] - Musk's focus on XAI and Grok makes App Store visibility extremely important for these ecosystems [6] - Musk's influence and ecosystem make this a significant challenge for Apple [6]

DDN is bringing to bear some really powerful experiences, products and engineering to bear with deep deep expertise. We are able to bring the best of high performance computing and workloads that we need to process in the cloud as well as onrem. I believe that DDN is at a juncture now where we can add huge value in processing any kind of AI workload.Why. Because we are AI data platform ready. We're ready to go and connect the two whether you're onrem, hybrid or purely in the cloud.We're working with hypersc ...

Elon Musk posting over the weekend that XAI, his company, will make an app designed for kids called Baby Grock. It comes after launching two so-called AI companions or kind of animated AI characters that users can interact with. Joining us to discuss this trend is CNBC contributor Mihal Lram out in San Francisco for today's tech check.Mihal, great to have you. Welcome aboard and um to be here. I don't know whether to start with sort of an AI chatbot that's safe for kids or these companions which sound a lit ...

I am in beautiful foggy San Francisco and we're going to get right into the news. The first story is about Windsurf and all of the drama that happened in the last few days. If you were not aware, let me give you a little bit of backstory first.Just about a month ago, it was reported that Open AI was going to acquire Windsurf. And if you're not familiar with Windsurf, it is an AI based coding assistant built into an IDE very similar to Cursor. They've sponsored this channel.I've enjoyed using them and OpenAI ...

AI Regulation & Ethical Concerns - AI language models trained on biased data can produce harmful outputs, as demonstrated by Grock's anti-semitic posts [1][7] - The core issue lies in the data used to train AI, where biased or hateful content leads to biased or hateful outputs [7] - Controlling data and algorithms allows for the control of dissent, privilege allocation, and targeted discrimination [9] - Discrimination can be built into AI systems, posing risks to communities through misidentification and false accusations [9][10] - The industry needs to address who is in charge of AI development, what decisions they are making, and who they are considering when making those decisions [10] Tech Firm's Role & Challenges - Tech firms are attempting to address biases in AI, but undoing centuries of bad action with good intention is challenging [6][7] - Internal investigators are brought in to navigate ethical dilemmas, where even the best intentions can clash with ambitions [6][8] - Existing structures may not be built for inclusion, posing challenges for companies trying to do the right thing with AI [8] Individual Responsibility & Action - Individuals have a choice to act and make a difference, even without explicit authority or power [5] - Not having power is not always an excuse for inaction, highlighting the importance of taking affirmative steps [6]