Blog - Afrikan Heroes

Sony Innovation Fund Kicks Off African Investment with Funding for South Africa’s Carry1st

January 30, 2024

In a groundbreaking move for Africa’s gaming industry, Carry1st, an Africa-focused game publisher and digital commerce platform, has secured a substantial investment from the Sony Innovation Fund. This marks the inaugural investment from the newly established Sony Innovation Fund: Africa, a venture capital initiative aimed at fostering the growth of entertainment businesses on the continent.

With over 200 million unique players, Africa’s gaming industry is on the brink of a remarkable transformation, driven by the rapid adoption of technology. According to industry sources like Newzoo and Carry1st, the sector is poised to surpass a market size of $1 billion in 2024.

Cordel Robbin-Coker, CEO and co-founder of Carry1st, expressed excitement about the collaboration, stating, “We are thrilled to join forces with Sony Innovation Fund: Africa. The relationship will help Carry1st drive the future of gaming in Africa.”

Carry1st’s unique position in the market, coupled with Sony’s extensive experience in the gaming and entertainment industry, is expected to create a formidable alliance. The partnership aims to explore and capitalize on the vast potential of the African gaming market.

Antonio Avitabile, Managing Director — EMEA, Sony Ventures Corporation, commented on the investment, stating, “We believe there is tremendous untapped potential for the gaming market in Africa, which we hope to experience and contribute to through our investment in Carry1st.”

This strategic collaboration is not only set to elevate Carry1st’s presence in the gaming industry but also contribute to the overall development and expansion of Africa’s entertainment landscape. As technology continues to reshape the continent’s economic and cultural landscape, the partnership between Carry1st and Sony sets a precedent for future investments and collaborations in Africa’s burgeoning gaming sector.

Sony Ventures’ Ambitious Plans for Africa

Sony Ventures plans to deploy its new $10 million fund, known as Sony Innovation Fund: Africa (SIF: AF), to support early-stage startups in the fields of gaming, music, film, and content distribution. This initiative is part of Sony Ventures Corporation’s broader efforts to back technology businesses across different markets and stages.

Despite fintech being the most funded sector in Africa, Sony Ventures is focusing on entertainment startups for its initial entry into the African market. Gen Tsuchikawa, CEO of Sony Ventures, stated that the company’s mission is to combine creativity and technology to enhance entertainment experiences worldwide.

Sony’s Africa-focused fund aims to provide much-needed support to entertainment tech startups in Africa, historically struggling to secure consistent venture capital. According to Partech Africa, these startups received only $42 million in 2022, accounting for just 0.9% of Africa’s total venture capital investments.

For example, the gaming market in Sub-Saharan Africa is expected to exceed $1 billion by 2024. Video-on-demand subscriptions and the music industry are also on the rise, with considerable growth expected in these areas in the coming years.

Sony Ventures plans to offer follow-on investments to its portfolio companies in addition to its seed and early-stage investment strategy. The $10 million fund anticipates ticket sizes ranging from $250,000 to $1 million.

Initially, Sony Innovation Fund: Africa will focus on South Africa, Kenya, Nigeria, and Ghana, with the potential for expansion in the future. The fund’s activities in Africa will be supported by the Sony Ventures team in Europe, with the intention of hiring a full-time member on the continent to manage venture capital sourcing.

Sony Ventures’ commitment to supporting African entertainment startups demonstrates its recognition of the region’s untapped potential and its desire to foster the growth of the entertainment industry in Africa through technology and innovation.

How Sony Ventures Plans to Deploy Its New $10M Fund in African Startups

Central African Central Bank Wants to Regulate Fintech, Initiates Forum

In a significant move towards fostering financial technology (fintech) innovation and regulation, the Central African Central Bank (Banque des États de l’Afrique centrale or Beac) inaugurated the first-ever fintech forum in Douala on January 29, 2024. The forum aims to regulate fintech activities within the Economic and Monetary Community of Central Africa (CEMAC), encompassing Cameroon, Congo, Gabon, Chad, Central African Republic (RCA), and Equatorial Guinea.

Jean-Clary Otoumou, the Director-General of Operations at Beac, emphasized the need for collaboration between Beac, the Financial Markets Commission (Cosumaf), the Banking Commission (Cobac), and fintech companies. Otoumou stated, “We do not know each other well. However, we all play crucial roles in payments within the region for our populations, and our ambition is to regulate.”

Highlighting the urgency of regulating digital financial services, Otoumou underscored the industry’s rapid growth and the security risks associated with transactions in the sub-region.

To address these concerns, the central bank has developed a regional financial inclusion strategy set to be implemented this year. The strategy focuses on providing access to reliable and secure data for all stakeholders in the financial inclusion sector, promoting and facilitating innovation, and ensuring interoperability.

According to Beac’s 2022 report on payment services in the CEMAC region, over 96% of transactions (2.3 billion operations) were conducted through Mobile Money, with only 2% (48.3 million operations) utilizing traditional bank transfers and cards. The report also indicated that instant electronic currency transfers were used in 21% of transactions, totaling 23,332 billion CFA francs.

Given the substantial transaction volumes, the necessity of regulation becomes evident. However, César Zinga, founder of Mapossa, a fintech specializing in automated personal finance, expressed concerns about the practical implementation of the regulation. Zinga suggested the need for a regulatory body specifically overseeing payment institutions.

Until January 31, the central bank and fintech promoters aim to collaborate and expedite financial inclusion efforts, currently estimated at 32% in the sub-region. Jean-Clary Otoumou stated, “Our strategic objective is for 75% of the 60 million inhabitants of the CEMAC to have a bank account and an electronic instrument by 2030.” The dialogue between regulatory authorities and fintech innovators is crucial for shaping a robust and effective regulatory framework in the evolving digital financial landscape of Central Africa.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Silicon Badia Leads $3M Investment Round in Egyptian AI-powered Logistics Startup Roboost

January 29, 2024

In a significant move towards reshaping the landscape of delivery management in the Middle East and North Africa (MENA) region, Roboost, the pioneering AI-powered logistics startup, has successfully concluded a $3 million investment round. The round was led by Silicon Badia, with noteworthy participation from RZM Investment, Flat6Labs, and Saudi Angel Investors. The influx of funds is set to propel Roboost into its next phase of regional expansion.

Roboost has gained prominence through its delivery management Software as a Service (SaaS) solution and AI operations copilot, which has streamlined home delivery operations for major brands spanning various industries. Notable clients include McDonald’s in Egypt and Kuwait, Buffalo Burger, El Ezaby Pharmacies, and Jumlaty across regional markets such as Egypt, Saudi Arabia, Kuwait, Morocco, and Tunisia.

The startup’s success lies in its utilization of proprietary machine learning, establishing industry-defining best practices. Roboost has introduced innovations such as pre-delivery technology, precision auto-dispatching, and “smart routes” tailored for riders. This technology is particularly beneficial for the 70% of orders made offline, relying on text addresses.

Roboost’s impact extends beyond route optimization, with real-time dynamic fleet payroll, customer insights through heat-maps and analytics, and advanced fraud detection, ensuring a comprehensive approach to delivery operations.

Currently empowering over 15,000 delivery drivers and serving nearly 10 million unique customers, Roboost has automated more than 40 million orders. The startup’s achievements include doubling delivery speed by eliminating inefficiencies, achieving 99.8% task automation, reducing order returns by over 80%, and cutting operational costs by 30%. Through enhanced fleet control, average driver productivity has increased by 40%, with fraud levels below 5%.

With a remarkable 400% year-over-year revenue growth, Roboost aims to extend its success across the entire MENA region’s delivery market. The startup plans to utilize the investment to broaden its scope, not only in delivery operations but also by expanding its e-commerce and middle-mile offerings through tailored automated solutions.

Hossam Shafick, an investor at Silicon Badia, expressed enthusiasm for backing a game-changing solution in the delivery management space. He highlighted Roboost’s unique value proposition, providing benefits to all stakeholders, including brand/store managers, delivery agents, and end-customers.

Mohamed Gessraha, CEO and Co-Founder of Roboost, shared his vision for the future, stating, “Our goal is to redefine what it means to have automated delivery operations by applying our technology to our customers’ most detailed workflows.” The CEO expressed gratitude for the investment, emphasizing its role in propelling Roboost’s growth and solidifying its position as a copilot for enterprises’ delivery operations.

Roboost AI Logistics Roboost AI Logistics

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

South Africa’s OfferZen Secures $4.3M Funding, Unveils Business Model Changes and Leadership Shift

South African developer hiring marketplace, OfferZen, has successfully concluded a EUR4 million (US$4.3 million) funding round from top-tier investors, marking a significant milestone in its journey. This comes alongside a strategic reformatting of its business model and key personnel changes.

Founded in 2015 and officially launched in 2016, OfferZen has emerged as a prominent player in the tech hiring sector, facilitating connections between curated, actively job-seeking developers and over 2,000 companies in South Africa and beyond. The startup’s primary goal is to assist companies in maximizing their potential by streamlining the hiring process.

OfferZen previously raised US$5.1 million in a funding round in 2021 and has now secured an additional US$4.3 million from notable investors, Invenfin and AI Capital.

Philip Joubert, Co-founder of OfferZen, expressed his excitement about the recent funding, stating, “Securing this funding from investors who share our long-term vision is a testament to our team’s hard work. We couldn’t be more excited to partner with investors that bring so much experience. Their support and capital investment will help us make a lot of product improvements over the coming months.”

The company has not only celebrated a financial victory but has also made significant adjustments to its business model in response to the challenges faced by its customers in 2023. In addition to the traditional per-hire charge, OfferZen has introduced a fixed-fee unlimited hiring subscription. This shift aims to alleviate the financial burden on tech companies and foster a more sustainable and predictable model.

OfferZen Co-founder Philip Joubert reflected on this change, stating, “It’s always scary making a big change to your business, but fortunately Unlimited worked. It’s easy to budget for, competitively priced, and we hoped it would relieve some of the pressure our customers were feeling. A significant number of our customers have moved to the subscription model over the last year.”

In a noteworthy development, after three years as CEO, Philip Joubert is passing the baton to Matt Beck, the former VP of marketing. Joubert expressed confidence in Beck’s abilities, saying, “Matt has been instrumental in levelling up our business for scale, loves our brand, and has been a great champion of our values. I’m glad to be able to call him my new boss.”

Matt Beck, the incoming CEO, shared his enthusiasm for the upcoming year, stating, “I’m really excited about this year. Our customers can expect the most significant updates to the platform yet in the coming months as we’re introducing completely new ways for candidates and companies to connect using AI.”

As OfferZen continues to evolve and adapt to the dynamic tech hiring landscape, the infusion of funds, business model changes, and leadership transition position the company for further growth and innovation in the months ahead.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

International Islamic Trade Finance Corporation (ITFC) Signs $90 Million Agreement for Djibouti

The International Islamic Trade Finance Corporation (ITFC) a member of the Islamic Development Bank (IsDB) Group, signed a US$90 Million Master Murabaha Agreement in favor of the Republic of Djibouti, with the International Hydrocarbons Company of Djibouti (SIHD) as the executing agency.

The signing took place between HE. Ilyas Moussa Dawaleh, Minister of Economy & Finance, in charge of Industry, and Eng. Hani Salem Sonbol, CEO of ITFC. The facility aims to support SIHD’s mandate of securing energy supply through the importation of petroleum products that is essential for electricity generation to boost all the sectors of the economy. This initiative fosters intra-OIC trade, as the petroleum products will be sourced mainly from other OIC member countries.

The ITFC interventions in Djibouti reflect the commitment to supporting Djibouti’s economy, starting with the energy sector and extending its positive impact to vital areas like services, manufacturing, and agriculture. This operation underlines ITFC’s commitment to fulfilling UN SDG 7, ‘Energy for All’.”

Commenting on the signing of the agreement, Eng. Hani Salem Sonbol, CEO of ITFC stated: “This financing will promote positive impact on the level of human and economic development and is expected to further strengthen the strategic cooperation between ITFC and Djibouti in the energy sector.”

Over the years, ITFC and the Republic of Djibouti have enjoyed a good and longstanding relationship with a total of US$1.6 billion approved by the Corporation in favor of the country, with 33 operations targeting the energy and health sectors. The Master Murabaha Agreement signing also aligns with the US$600 million 3-year Framework Agreement signed in May 2023 between ITFC and Djibouti.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

European Union Naval Force (EUNAVFOR) Operation Commander Visits Somalia

From 22 to 24 January 2024, the Operation Commander (OPCDR) of the European Union Naval Force (EUNAVFOR) Operation ATALANTA, Vice Admiral Ignacio Villanueva Serrano, paid a visit to Somalia to introduce himself to the local and European authorities after taking command of the Operation on 23 November 2023: “One of the things I wanted to do first was to come here and visit personally the Federal Authorities from Somalia and to discuss with them how we can improve our work to provide a better maritime security environment in Somalia”.

The OPCDR had office-calls with members of the government linked to the EUNAVFOR ATALANTA. These meeting provided an overview of the tasks of the Operation’s mandate. They also gave rise to discussions on ways of strengthening support and cooperation between EUNAVFOR ATALANTA and the Federal Government of Somalia (FGS).

Together with the EU Ambassador to Somalia, H.E Karin Johansson, the OPCDR were given the opportunity to exchange with a team from the FGS led by the National Security Advisor, Mr Hussein Moalim. The meeting provided constructive discussions on the framework for the cooperation between the FGS and EUNAVFOR to jointly improve maritime safety in the region.

He also met the Somali Minister of Fisheries and Marine Resources, H.E. Ahmed Hassan Adan. The OPCDR had the opportunity to present the latest actions taken by the Operation to support the Somali Government’s efforts to tackle illegal, unreported, and unregulated (IUU) fishing. Operation ATALANTA remains committed to contribute to fight IUU fishing for sustainable fishing of the coast of Somalia.

The legal framework of the Operation was also at the heart of discussions with Somali’s Minister of Justice and Constitutional Affairs H.E. Hassan Mo’allin Mohamoud. The Operation EUNAVFOR benefits from a comprehensive legal approach, and discussions with the Minister have let to identifying avenues for enhancing cooperation. Discussions between Somalia State Minister for Ports and Marine Transport, Mohamed Abdulkadir and the OPCDR resulted in the identification for joint action to strengthen our communication.

This visit also provided an opportunity for the OPCDR to present itself to the European Union (EU) family present in Somalia. The EU is engaged in the Horn of Africa through an integrated approach, of which EUNAVFOR ATALANTA represents one of the military pillars. In this regard, the OPCDR had a lengthy discussion with the head of the EU Delegation Ambassador, H.E. Karin Johansson. The delegation’s support and assistance are crucial for Operation ATALANTA. The OPCDR also seized this visit to meet its sister mission, the European Union Capacity Building mission in Somalia (EUCAP Somalia) and the European Union Training Mission in Somalia (EUTM Somalia)

Finally, Vice Admiral Villanueva also held meetings with international community partners with whom the Operation interacts on a daily basis in order to successively achieve its Mandate. Discussions focused on assessing their partnership notably with the United Nations Office on Drugs and Crime (UNODC); World Food Programme (WFP) and Food and Agriculture Organization (FAO) representatives; and Interpol Mogadishu.

“We have had very productive and complete conversations, and the outcome will lead my orders in the next months to better support Somali authorities” the OPCDR said after finishing his visit to Somalia.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Zoom Fibre Connects 100 South African Schools

In a significant development for education and connectivity in South Africa, Zoom Fibre has announced the successful connection of 100 schools through its Schools Fibre Project. This achievement reflects Zoom Fibre’s commitment to providing high-speed internet access for the next generation and breaking down barriers to connectivity in the education landscape.

The Schools Fibre Project was born out of a simple yet powerful vision – to provide seamless and reliable internet connectivity to schools nationwide. Zoom Fibre’s goal is to create an optimal learning environment by ensuring that both students and educators have access to the digital tools essential for 21st-century learning.

Zoom Fibre works closely with each school to provide customised solutions based on their unique needs and challenges. This personalised approach ensures that the Schools Fibre Project is a perfect fit for each educational institution.

Keith Joseph, chief commercial officer at Zoom Fibre, says: “In celebration of this milestone, Zoom Fibre extends heartfelt gratitude to the schools, educators and communities that have embraced the Schools Fibre Project. As we look ahead, we’re excited to continue expanding our reach, creating more opportunities for growth, learning, and success in South African schools.”

Amid this accomplishment, it is essential to recognise the growing demand for improved connectivity in South African schools. Educators and students alike have expressed the need for reliable and high-speed internet access to leverage fully the benefits of digital learning tools and online educational resources.

In response to this demand, Zoom Fibre’s Schools Fibre Project not only meets but exceeds expectations, addressing the call for better connectivity and bridging the digital gap that has persisted for too long. The tailored solutions provided by Zoom Fibre are a direct response to the diverse educational landscapes across the country, acknowledging and fulfilling the unique requirements of each school.

As South African schools strive to prepare students for a future where technology is central, the demand for better connectivity becomes synonymous with the demand for quality education.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Rwanda-based Health-tech Viebeg Medical Poised for Growth with New Funding

January 28, 2024

In a significant development for the healthtech sector in East and Central Africa, Viebeg Medical, a leading medical supplies and equipment provider, has announced a substantial investment from J&J Impact Ventures and Sanofi Global Health Unit Impact Fund.

Viebeg Medical, founded in 2018 by CEO Tobias Reiter and Chief Commercial Officer Alex Musyoka, has successfully secured funding from prominent venture capital firms in the past, including Beyond Capital Ventures, Global Ventures, Angaza Capital, Founders Factory Africa, Norrsken, and others, amounting to over $2.5 million.

The latest investment from J&J Impact Ventures, an impact fund under the Johnson & Johnson Foundation, and Sanofi Global Health Unit Impact Fund is expected to propel Viebeg Medical to new heights in its mission to enhance healthcare accessibility in the region.

Serving over 1,000 hospitals, clinics, pharmacies, and healthcare providers in Rwanda, Kenya, and the Democratic Republic of the Congo, Viebeg stands out for its innovative data-driven procurement solution called VieProcure. This platform facilitates the efficient distribution of medical supplies, equipment, and pharmaceuticals, addressing critical supply chain challenges in the healthcare sector.

CEO Tobias Reiter expressed excitement about the company’s future endeavors, stating, “Through the past three years of operations at Viebeg, our team has identified large inefficiencies when it comes to the procurement decisions of healthcare providers across the East and Central African region.”

He further explained the company’s vision, saying, “Our HDSM model identifies the current healthcare demand, compares it to the supply of health services in the region, calculates the profitability of each unit of medical equipment, and then supports healthcare providers in making optimal procurement decisions, translating to better quality and more affordable patient outcomes.”

The investment comes at a pivotal time for Viebeg as it focuses on building a world-class health demand simulation model (HDSM), beginning in Rwanda where the company has the longest operational history.

Jon Fairest, Head of the Global Health Unit at Sanofi, expressed the organization’s enthusiasm for partnering with Viebeg, stating, “We are excited to play a role in Viebeg’s scale-up journey as an investor and partner through our impact fund. Viebeg has demonstrated the value of its model in disrupting supply chain challenges to improve accessibility and affordability of quality and essential medical equipment in resource-constrained health systems.”

He added, “Our global health unit is dedicated to improving access to sustainable healthcare for vulnerable populations with the highest unmet medical needs.”

As Viebeg Medical continues to expand its footprint and make strides in disrupting traditional healthcare supply chains, this investment is poised to make a significant impact on healthcare accessibility and affordability in the East and Central African region. Investors and industry experts will be closely watching as Viebeg enters its next phase of growth and innovation.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Takealot Group Reshuffles, Appoints New CEO

Takealot Group has announced significant leadership changes, months before Amazon.com is expected to launch retail e-commerce operations in South Africa. South Africa’s leading e-commerce group, which owns Takealot.com, Superbalist and Mr D, said on Friday that Mamongae Mahlare will become executive chair, with Frederik Zietsman – until now CEO of takealot.com – taking the reins as group CEO.

“The streamlining of the leadership between the group and takealot.com will reinforce resources around its flagship online retail and marketplace platform and bring stronger alignment and focus in delivering on its key growth objectives,” the statement said.

Kim Reid, current chairman of Takealot Group – and the person credited with building the group into what it is today – will remain on the board as a director and as a strategic advisor to both Mahlare and Zietsman.

Mahlare was appointed as CEO in August 2021, replacing Reid in the role. Speaking of the development, Mahlare said that: “My role as executive chair is about supporting the leadership to grow the business and driving opportunities that move our group forward. I will also be collaborating with our stakeholders to champion the enablement of e-commerce and how we can accelerate SMME development in the digital economy to create much-needed jobs.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Elon Musk Seeks up to $6-Billion in Funding for xAI

Elon Musk’s artificial intelligence start-up xAI is in talks to raise up to US$6-billion at a proposed valuation of $20-billion, the Financial Times reported (paywall) on Friday, as the billionaire entrepreneur looks to mount a challenge to OpenAI. The start-up has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East for the funding, according to the report, which cited multiple people familiar with the matter.

The AI race has been heating up with several investors signing big cheques for start-ups looking to capitalise on what has captured Silicon Valley’s attention over the past year. At $20-billion, xAI’s valuation would be a fraction of OpenAI’s, but in line with some other peers. A $6-billion fundraise would be much higher than the $1-billion goal xAI had set last month in a filing with the US Securities and Exchange Commission.

At $20-billion, xAI’s valuation would be a fraction of OpenAI’s, but in line with some other peers such as Google-backed Anthropic.

Musk has approached investors in Japan and South Korea for the latest fundraise, the Financial Times reported. His office did not immediately respond to a request for comment.

Morgan Stanley is coordinating the fundraise, according to the report. The bank was one of several that helped finance Musk’s takeover of social media platform X, formerly known as Twitter. Last week, Musk denied a report that xAI had secured $500-million in commitments from investors toward a $1-billion funding goal.

Vocal

The CEO of Tesla has been vocal about his plans to build safer AI. Musk co-founded OpenAI in 2015, but stepped down from its board in 2018. Last year, xAI launched “Grok”, a chatbot rivaling OpenAI’s ChatGPT.

Musk also warned about developing AI and robotics outside Tesla, earlier this month, unless he gets more voting control at the electric vehicle maker. He said he would be uncomfortable building Tesla into an AI leader unless he had 25% voting control.

Thanks to the popularity of ChatGPT, the AI industry has been a rare bright spot in a subdued start-up funding environment. Anthropic and Microsoft-backed Inflection AI have also raised funds in recent months.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry