American billionaire Elon Musk plans to launch an artificial intelligence startup that will compete with Open Ai, the maker of ChatGPT, according to a Reuters report.

Reuters quoted the Financial Times as saying that Musk, the owner of Twitter, has assembled a team of researchers and engineers in the field of artificial intelligence, and is in discussions with some investors in Space X and Tesla about pouring money into his new project.

Musk's plan for the company comes weeks after a group of AI researchers and executives, including Musk, called for a six-month halt to developing systems more powerful than OpenAI's GPT-6.

Companies such as Microsoft and Google's owner Alphabet are pushing to incorporate generative artificial intelligence (AI) — the technology behind the development of chatGPT technology — into their products.

Chat GPT faces opposition as regulators call for specific rules before they are widely adopted.

Italy has banned the use of GPT over privacy issues, while the European privacy watchdog has set up a task force in a first step towards building a common AI policy.

Italy bans use of GPT due to privacy issues (Getty Images)

Musk has secured thousands of graphics processing units and computing systems required to perform the complex tasks required by artificial intelligence and sophisticated graphics software from Nvidia, according to the Financial Times.

Musk last month registered a new company, XAI Corp. (X.AI Corp.), in Nevada, according to government filings. The company document shows Musk as the sole director of the company, while Jared Birshall, the managing director of Musk's family office, is named in the document as Musk's secretary.

It was unclear whether the company was linked to Musk's efforts to jump-start into the world of AI business.

Musk is one of the founders of OpenAI, which began as a nonprofit in 2015 before resigning from its board in 2018 after disagreements over the company's management.