At a company-wide meeting at xAI’s San Francisco headquarters last week, Musk told employees that if the company can survive the next two to three years, it will beat its competitors, according to multiple people familiar with the matter. Musk said that xAI's ability to rapidly expand its power and data capacity will be a key factor in achieving superintelligence (intelligence beyond humans) and becoming the most powerful artificial intelligence company.

According to sources, Musk said that xAI can achieve artificial intelligence that is equal to or exceeds human intelligence in the next few years, or even as early as 2026.

Musk said in November that xAI's Grok 5 model had a 10% chance of achieving AGI, and he said the company planned to release the model early next year.

Musk also told employees that xAI would have an advantage compared to other artificial intelligence companies because it has access to about $20 billion to $30 billion in annual funding and it can benefit from his other companies, the sources said. Earlier this year, Tesla integrated Grok into its vehicles.

Overall, Musk seems pleased with xAI’s progress, people familiar with the matter said. One insider described the meeting as "energetic."

At this meeting, Musk also proposed plans to establish data centers in space and colonize Mars. Tesla's humanoid robot Optimus could eventually serve such alien data centers, he said.

Musk has previously said that Optimus Prime will provide support for SpaceX missions as early as next year. Google CEO Sundar Pichai and OpenAI CEO Sam Altman have also spoken publicly about the possibility of building data centers in space, although Pichai admitted it was a "moonshot."

At the meeting, xAI’s leadership showcased several updates to existing products, such as the company’s Grok Voice app for Tesla owners and its agents, sources said. Some of the updates include improving Grok's ability to predict outcomes, improving Grok's voice listening capabilities, and video editing, people familiar with the matter said.