…Musk’s ability to secure #business from the banks for his #AI #chatbot shows the enormous sway of the world’s richest man over a banking sector clamoring for his business now & into the future.

The banks’ purchases of #Grok subscriptions were not merely good-will gestures, acc/to 3 people with knowledge of the arrangements. #Musk insisted that they purchase the chatbot services. He has also asked the banks to advertise on #X, …but was less adamant about that request, acc/to 2 of those people.

For now, 5 #banks are expected to work on the offering — #BankOfAmerica, #Citigroup, #GoldmanSachs, #JPMorganChase & #MorganStanley. The #LawFirms #GibsonDunn & #DavisPolk are also advising on the deal.

Musk’s agreement with banks is a big score for #SpaceX, which merged with #xAI in February & whose #Grok is a distant 4th in the #AI race behind #OpenAI’s #ChatGPT, #Claude & #Google’s #Gemini.

#Musk #tech #business #law #SEC #antitrust

#Musk has marketed #Grok as the antidote to political correctness & said his #chatbot would not be “woke,” unlike its competitors. In recent months, Grok has been mired in controversy after sharing #antisemitic #content & praise of Adolf #Hitler as well as generating nonconsensual #sexualized images of #women & #girls. Some countries, including Indonesia & Malaysia, have banned Grok, while others have opened investigations into its spread of sexualized material.

#AI #tech #business #law