News Report Technology
December 06, 2023

Elon Musk’s AI Venture xAI Plans to Raise $1 Billion in Equity Offering

Elon Musk's AI Venture xAI Plans to Raise $1 Billion in Equity Offering

Elon Musk’s artificial intelligence startup X.AI officially filed with the U.S. Securities and Exchange Commission (SEC) to raise up to a $1 billion in an equity offering, according to a filing released on Tuesday.

The filing discloses that xAI has successfully secured $134.7 million in equity financing from a total offering amount of $1 billion. The first sale of shares took place on November 29, marking a significant milestone for the ambitious AI venture, Reuters reported.

The fundraising initiative comes at a time when the AI sector is experiencing heightened interest and investment, following the success of OpenAI‘s ChatGPT and its substantial $10 billion funding injection from strategic backer Microsoft last year.

In addition to xAI, Elon Musk oversees a diverse portfolio of ventures including Tesla, SpaceX, Neuralink and Boring Company.

Last month xAI introduced Grok – a generative AI model, and the team behind Grok announced it is hiring for various positions at xAI, from AI researchers to engineers — to build AI systems that can help humanity understand the world better.

Musk announced that xAI would be integrated into his social media platform X and would also be available as a standalone app, demonstrating the company’s plan to expand its reach.

The startup’s team was assembled in July this year, and comprises talent from renowned AI research firms, including Google’s DeepMind and Microsoft Research. Notably, xAI’s team members have been involved in projects such as DeepMind’s AlphaCode and OpenAI’s GPT-3.5 and GPT-4 chatbots.

Concerns Loom Over AI Safety

However, regulatory concerns loom large over the AI landscape — with authorities expressing apprehension about the potential misuse of technology to spread misinformation.

Elon Musk, known for his outspoken views, has consistently emphasized his commitment to developing safer AI. During a Twitter Spaces event earlier this year, Musk revealed that xAI’s approach involves creating a “maximally curious” AI, eschewing explicit programming of morality into its systems.

In November, (xAI) team unveiled the “xAI PromptIDE” to offer users a powerful toolkit to work with large language models. According to the startup, It is a platform set to empower engineers and researchers within the community.

The “core objective” of this tool is to provide “accessibility and transparency” to Grok-1, the driving force behind Grok, and offer a swift and effective means to explore the capabilities of Large Language Models (LLMs).

The billionaire entrepreneur, who launched xAI in July, has positioned it as a “maximum truth-seeking AI,” directly challenging industry giants such as Google’s Bard and Microsoft’s Bing AI. Musk’s involvement in the AI sector dates back to 2015 when he co-founded OpenAI, the company behind the immensely popular ChatGPT. However, Musk stepped down from the board in 2018.

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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