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

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.

Read more: AI Crypto Tokens Lose Steam as Post-Nvidia Earnings Hype Wears Off