<div id="readability-page-1"><div><div>Venture capitalist Chamath Palihapitiya has amplified an observation about Tesla Inc. TSLA CEO Elon Musk's efficiency in building cutting-edge AI, despite spending far less than rivals like Meta Platforms Inc. META.What Happened: Following the launch of Grok 4, Musk's most advanced large language model developed by his AI startup xAI, Artificial Analysis ranked the model as the most intelligent among leading competitors, surpassing OpenAI's GPT-4, Anthropic's Claude 4 and Alphabet Inc.'s GOOG GOOGL Google Gemini 2.5 Pro in several key benchmarks.In response to this achievement, Palihapitiya posted on X, &#34;Elon doing Elon things… Grok 4 is now the leading AI model in the world. I think people may not realize how impressive this feat is… they started from scratch just a few years ago.&#34;A user replied to his post, saying, &#34;Seriously, how does this guy produce what he produces? Meta is buying talent at $200M/year and Elon keeps his people at a fraction. Mind blowing.&#34; Palihapitiya agreed, replying: &#34;This is a critically important point.&#34; Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.Why It's Important: Meta's Superintelligence Labs (MSL), launched in June 2025, has aggressively poached top talent from OpenAI, Apple Inc. AAPL and Google DeepMind with multimillion-dollar offers as part of its pursuit of artificial general intelligence (AGI).In contrast, Musk's xAI—founded in 2023—has built a world-class model reportedly with a leaner team and lower compensation.Musk’s xAI is also seeking to raise $5 billion as it ramps up API access and deployment across X, Tesla and potentially Microsoft Corp.'s MSFT Azure.xAI's valuation has jumped to $113 billion after its March acquisition of X. The company has also wrapped up a $300 million share sale and is still seeking up to $20 billion in equity funding, with potential valuations climbing as high as $200 billion.Check out more of Benzinga’s Consumer Tech coverage by following this link.<ul> <li>Nvidia Sometimes Feels Like America's Only Bargaining Chip In Trade Standoff With China, Says Jim Cramer: ‘Own It, Don't Trade It'</li> </ul>Photo courtesy: Shutterstock</div></div></div>

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Venture capitalist Chamath Palihapitiya praised Elon Musk's efficiency in AI development, highlighting that Musk's xAI has launched Grok 4, now ranked as the leading AI model, despite spending significantly less than Meta, which invests $200 million annually to attract talent. Palihapitiya agreed with a user's comment on Musk's ability to produce high-quality products with a leaner team. xAI, founded in 2023, is valued at $113 billion and is seeking $5 billion in funding, aiming for a potential valuation of $200 billion.

- Venture capitalist Chamath Palihapitiya highlighted Elon Musk's efficiency in developing AI with significantly lower spending than competitors like Meta.  
- Musk's AI startup xAI launched Grok 4, which surpassed leading models from OpenAI, Anthropic, and Google, achieving the highest intelligence ranking in key benchmarks.  
- While Meta's Superintelligence Labs aggressively recruits talent with high salaries, Musk's xAI has built a competitive model with a smaller, more cost-effective team, raising its valuation to $113 billion.

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Chamath Palihapitiya Agrees With A Social Media User Who Says While Meta Spends $200 Million A Year To Poach AI Talent, Elon Musk Keeps Costs Low But Still Manages To Unveil Better Products