X.AI, an artificial intelligence startup founded by Elon Musk, has recently submitted documents to the SEC, revealing its intention to secure up to $1 billion through an equity offering.
The startup has already garnered approximately $135 million from four investors, with the initial sale occurring on November 29. The filing notes a “binding and enforceable agreement” for the acquisition of the remaining shares.
X.AI, introduced by Musk in July, sets out to “understand the true nature of the universe,” as stated on its website. Last month, the company unveiled Grok, a chatbot inspired by “The Hitchhiker’s Guide to the Galaxy.” The bot, equipped with two months of training, claims real-time internet knowledge and a touch of humor in its responses to even spicy queries, differentiating itself from other AI systems.
Grok places X.AI in direct competition with entities like OpenAI, the creator of ChatGPT, which Musk was involved in before parting ways in 2018. It will also contend with Google’s Bard technology and Anthropic’s Claude chatbot.
Despite a request for comment, the company has not immediately responded.
To support its endeavors, Musk reportedly secured a substantial number of high-powered graphics processing units (GPUs) from Nvidia earlier this year, crucial for developing large language models.
Among Musk’s various ventures, X.AI stands alongside his roles in Tesla, SpaceX, Twitter (acquired last year), Boring Company, and Neuralink.
Musk clarified last month that investors in X (previously Twitter) would hold a 25% stake in X.AI, emphasizing the separation between X.AI and X Corp, while expressing collaboration with Tesla and other companies.
The team at X.AI comprises professionals with backgrounds in esteemed organizations like DeepMind, OpenAI, Google Research, Microsoft Research, Twitter, and Tesla. Their experience spans notable projects, including DeepMind’s AlphaCode and OpenAI’s GPT-3.5 and GPT-4 chatbots.
X.AI’s journey began with its incorporation in Nevada in March, as per official filings. On a Tesla earnings call in July, Musk outlined the genesis of X.AI, stating that some of the world’s best AI engineers and scientists preferred joining a startup over a larger, established company like Tesla.
Regarding financing, the initial sale date aligned with Musk’s appearance at the 2023 DealBook Summit, where he delivered a bold message to advertisers who had suspended campaigns on X in response to antisemitic comments he had posted and amplified.
