Musk Fan wrote a post · Dec 6, 2023 17:00

Elon Musk’s AI startup — X.AI — files to raise $1 billion in fresh capital

X.AI, Elon Musk’s artificial intelligence startup, has filed with the SEC to raise up to $1 billion in an equity offering.
The company has raised nearly $135 million from four investors, with the first sale occurring on Nov. 29, according to the filing.
The AI startup, which Musk announced in July, seeks to “understand the true nature of the universe,” according to its website.

X.AI, an artificial intelligence startup founded by Elon Musk, has filed with the SEC to raise up to $1 billion in an equity offering.

The company has already brought in nearly $135 million from four investors, with the first sale occurring on Nov. 29, and has a “binding and enforceable agreement” for the purchase of the remaining shares, the filing says.

With Grok, X.AI aims to directly compete with companies including ChatGPT creator OpenAI, which Musk helped start before a conflict with co-founder Sam Altman led him to depart the project in 2018. It will also be vying with Google’s Bard technology and Anthropic’s Claude chatbot.

“We are a separate company from X Corp, but will work closely with X (Twitter), Tesla, and other companies to make progress towards our mission,” X.AI says on its website.

Musk incorporated X.AI in Nevada in March, according to filings.

On a Tesla earnings call in July, here’s what Musk told analysts wondering about whether X.AI may compete with any of Tesla’s business:
“There were just some of the world’s best AI engineers and scientists that were willing to join a startup but they were not willing to join a large, sort of relatively established company like Tesla,” he said. “So I was like, OK well, better it’s a startup that I run than they go work somewhere else. That’s kind of the genesis of X.AI.”