Billionaire entrepreneur Elon Musk has reportedly set a new and more ambitious timeline for achieving artificial general intelligence (AGI) at his artificial intelligence startup xAI, expressing confidence that the company could reach the milestone within the next two years, possibly as early as 2026.

According to a report by Business Insider, Musk shared his updated outlook during an all-hands meeting with employees at xAI’s headquarters in San Francisco. AGI refers to a stage of artificial intelligence where systems are capable of reasoning, learning and thinking at a level comparable to, or even beyond, human intelligence — a goal that remains elusive despite rapid advances in AI technologies.

Revised timeline for AGI at xAI

During the internal meeting, Musk reportedly told staff that xAI could achieve AGI within two years if the company continues to make steady progress. This marks a more defined timeline compared to his earlier public comments, in which he suggested that the chances of reaching AGI with upcoming models were still relatively modest.

Earlier, Musk had indicated that xAI’s next-generation Grok 5 model had about a 10 per cent probability of reaching AGI-level capabilities. The Grok 5 model is expected to be released in early 2026 and is seen as a major step forward in the company’s AI roadmap.

While expressing optimism, Musk also cautioned that achieving AGI would require “a lot of work behind the scenes”, including massive scaling of infrastructure, talent and computational power.

Vision of surpassing human intelligence

According to the report, Musk believes that once AGI is achieved, xAI’s systems could eventually surpass human intelligence, potentially positioning the company as the most powerful player in the artificial intelligence sector.

Musk has long been vocal about both the potential and the risks associated with advanced AI. While he has warned in the past about uncontrolled AI development, he has also argued that building powerful AI systems within organisations aligned with human values is crucial for the future.

At xAI, Musk has framed AGI not merely as a technological achievement but as a strategic imperative in an increasingly competitive global AI race.

Crucial years ahead for xAI

Musk reportedly told employees that the next two years would be decisive for xAI’s future. He suggested that if the company can survive and make meaningful progress during this period, it could surpass major rivals in the AI space.

xAI currently competes with some of the world’s biggest technology companies, including Google, OpenAI and Meta, all of which are investing heavily in large language models, generative AI tools and long-term AGI research.

“The next couple of years are critical,” Musk reportedly said, adding that success during this phase could allow xAI to pull ahead of competitors who already have a significant head start.

Funding advantage and access to resources

One of xAI’s key strengths, according to Musk, is its access to substantial funding. The report states that Musk believes xAI could tap between $20 billion and $30 billion in funding annually, giving it a financial edge over many competitors.

This access to capital is expected to play a vital role in scaling data centre capacity, acquiring advanced hardware and attracting top AI talent — all essential components for developing AGI-level systems.

Musk also pointed out that xAI benefits from its proximity to his other companies. Earlier this year, Tesla integrated xAI’s Grok chatbot into its vehicles, offering a real-world deployment platform that few AI startups can match.

Massive expansion of computing power planned

A major highlight of the meeting was Musk’s announcement regarding xAI’s plans to dramatically expand its computing infrastructure. He reportedly said the company aims to increase the number of graphics processing units (GPUs) it operates from around 2,00,000 to more than one million.

Such an expansion would place xAI among the largest AI compute operators in the world. GPUs are a critical resource for training and running large AI models, and access to large-scale compute capacity is widely regarded as one of the main bottlenecks in advanced AI development.

The planned expansion underscores Musk’s belief that scaling — both in terms of data and compute — is essential to reaching AGI.

Positive response from employees

Musk’s comments were reportedly met with a positive reception from xAI employees, many of whom see the ambitious targets as a sign of confidence in the company’s direction and long-term vision.

Employees were said to be encouraged by the combination of strong financial backing, aggressive infrastructure expansion and the integration of xAI technology into Musk’s broader ecosystem of companies.

AGI race intensifies globally

The renewed focus on timelines for AGI comes at a time when the global race for advanced AI capabilities is intensifying. Governments, corporations and research institutions across the world are investing heavily in AI, viewing it as a strategic technology with implications for economic growth, national security and scientific advancement.

While many experts caution that AGI remains a highly uncertain goal, Musk’s statements signal that xAI intends to be at the forefront of this pursuit.

Conclusion

Elon Musk’s assertion that xAI could achieve artificial general intelligence by 2026 reflects both his characteristic ambition and the rapidly accelerating pace of AI development. Backed by significant funding, plans for massive compute expansion and integration with Musk’s other ventures, xAI is positioning itself as a serious contender in the global AI race. Whether the company can translate optimism into reality remains to be seen, but the next two years are set to be critical for its AGI ambitions.