xAI, an artificial intelligence (AI) startup founded by Elon Musk, is looking to raise $1bn in equity funding.
According to a filing to the US SEC, the AI company has already raised $134.67m from the total offering amount of $1bn.
xAI has “entered into a binding and enforceable agreement for the purchase and sale of the” remaining shares.
Musk incorporated the AI company in the US state of Nevada in March this year.
Last month, the startup launched its first product, an AI chatbot, called Grok.
Announcing the chatbot, xAI said Grok was developed in two months, and it is “still a very early beta product”.
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xAI claims that Grok was trained from the data posted on X and as a result offers quicker access to real-time developments.
Grok is available to a limited number of users in the US for testing. After it exits testing, the AI assistant will be available as a part of X’s $16 monthly premium+ subscription.
In a tweet last month, Musk said “X Corp investors will own 25% of xAI”.
Despite his involvement in the field, Musk has shown serious skepticism towards AI.
Musk signed an open letter on 22 March 2023, along with hundreds of other prominent figures in the business, advising prudence in the development of AI consumer products such as Open AI’s ChaptGPT.
Musk co-founded OpenAI in 2015, but in 2018 left the company’s board.
“OpenAI was created as an open source (which is why I named it “Open” AI), non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft. Not what I intended at all,” Musk said in the post on X, earlier this year.
Microsoft has invested billions in OpenAI and recently joined its board as an observational non-voting member following the failed ousting of OpenAI CEO Sam Altman.