Elon Musk’s artificial intelligence startup, xAI, is seeking to raise $1 billion in funding from equity investors, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The company has already raised nearly $135 million from four investors, with the first sale occurring on November 29. The remaining $865.3 million is expected to be raised through a binding and enforceable agreement for the purchase and sale of the remaining shares.
xAI was launched by Musk earlier this year to compete with other generative AI companies, including OpenAI, where Musk was a co-founder. The company has debuted one product, a chatbot called Grok, trained on data from the X social network, which Musk also owns. Grok is designed to answer questions with a bit of wit and has a rebellious streak. Users of the social network who sign up for Premium+, a subscription priced starting at $16 per month in the US, will get access to Grok.
Musk has stated that equity investors in X, formerly called Twitter, will own 25% of xAI. The company is working closely with Musk’s other companies, including Tesla and X, formerly Twitter. The AI startup, which Musk announced in July, seeks to “understand the true nature of the universe,” according to its website.
The $1 billion raise is part of a rapid ramp-up at Musk’s AI startup, which he rolled out in July. AI researcher Igor Babuschkin, formerly of Google-owned DeepMind, is leading xAI. The startup is working closely with Musk’s other companies, including Tesla and X, formerly Twitter.
The implications of xAI’s successful funding and subsequent innovations could be far-reaching. It could challenge established norms and models within the AI industry, encouraging both established companies and startups to rethink their strategies. The future of xAI, amidst Musk’s ambitious goals and the evolving AI landscape, is poised to influence not just the technological aspects of AI but also the regulatory and ethical frameworks governing it.