The startup made the announcement on Wednesday, revealing a team of talented engineers with experience at major companies such as Google (owned by Alphabet), Microsoft, and OpenAI.

Musk, the CEO of Tesla and owner of Twitter, will be leading the xAI venture.

He has been vocal about his concerns regarding the development of AI and has called for a pause in its progress, advocating for regulatory measures in the industry.

In a tweet on Wednesday, Musk stated, “Announcing formation of @xAI to understand reality.” As part of their outreach efforts, xAI has also scheduled a Twitter Spaces chat, which is set to take place on July 14.

The launch of xAI’s website marks an important milestone for the AI startup, as it seeks to explore and gain a deeper understanding of reality through its innovative artificial intelligence technologies

The competing platform, Bluesky, promises to be a “social internet” that thinks in the future, giving consumers additional options and liberating them from platforms.

The app is still under construction and may only be accessed with an invitation code.

New York Post claims that Dorsey started working on Bluesky in 2019 as a side project with money from Twitter.

Many users of Bluesky say the app’s current beta version is similar to a pared-down copy of Twitter, Tech Crunch said. However, demand for the exclusive app has been growing, and the platform reportedly has about 20,000 users in its current form.

In the nearest future, the app developers hope to give users “algorithmic choice,” which would allow them to choose how content is fed onto their screens, instead of a one-fits-all algorithm controlled by the app developers.

Twitter shares were down about 6 percent after hours on Friday.

Although, Twitter said it is still committed to closing the deal at the agreed-upon price and plans to pursue legal action to enforce the agreement.

TechEconomy reported in May that Musk might be considering pulling away from taking over the micro-blogging platform. This move will cost him a whopping $1b termination fee.

In a letter to the company, filed Friday with the Securities and Exchange Commission, Musk accuses Twitter of making “false and misleading representations” about the prevalence of fake accounts on its platform.

He says the company has not complied with its obligations to share data and information that he says he needs to evaluate its business.

“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” Musk’s lawyer, Mike Ringler, wrote.

Legal experts say this may not be sufficient grounds to break off the $44 billion deal without Musk being on the hook for a hefty fine. In response to Musk’s letter, the chair of Twitter’s board said it planned to sue.

“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement.

We are confident we will prevail in the Delaware Court of Chancery,” said Bret Taylor in a tweet, referring to a Delaware court that handles corporate disputes.