Elon Musk’s AI Startup Files With SEC To Raise Up To $1 Billion In Equity Offering

Tech billionaire Elon Musk seems to be on the move to really get his AI startup running in the right direction as the Tesla owner just gave the green signal for an equity offering of up to $1 billion with the SEC.

The much talked about startup dubbed X.AI was founded by Musk himself and at the moment, it’s already managed to bring in a whopping $134.6 million, thanks to four top investors. The first sale in this regard arose at the end of last month.

This particular filing in question is linked to the forceful and binding agreement regarding buying the rest of the shares.

Musk first made heads turn with this startup firm in July of this year as that’s when he gave more details about the company and how it seeks to comprehend the universe’s true value as delineated on the website’s homepage.

Then in November, we saw the company also roll out its first-ever personal chatbot dubbed Grok. Moreover, Musk mentioned how it was created in replica to the Hitchhiker’s Galaxy Guide and then went on to be launched for the first time just two months after it got its initial training.

For now, it is being hailed as a chatbot that has great knowledge of the latest happenings taking place online so all the real-time events are understood well by Grok, as per Musk’s statements and those generated by his company.

Similarly, X.AI says Grok is created to provide quick and accurate responses to user prompts, adding a little humor and wit along the way. They similarly raved about its massive rebellious streak so in case you have an issue with humor, this might not be your cup of tea, the website added.

You’ll also see Grok generating replies to queries that come under the ‘spicy’ domain that most others would simply reject for obvious reasons.

Therefore, X.AI is yet to respond to questions on this front but from what we can tell, Grok is designed to compete with other arch-rivals from the big tech world including ChatGPT. The latter has a very unique past history with Musk as OpenAI’s co-founder Sam Altman and Musk have their own little battle after Altman caused the world’s richest person to depart from a project that arose in 2018.

We’re also seeing Grok go head to head with Google’s Bard offering as well as Claude from Anthropic.

At the start of 2023, Musk added how he was securing thousands of GPUs from top provider Nvidia as the goal was to create an LLM.

Seeing Musk head many large companies like X, Tesla, SpaceX, and others is already inspiring and now his venturing into the world of AI with a bang through this startup is certainly commendable. But how well it does and how accepting people are to Grok can only be ascertained as time goes on.

Other big firms that Musk owns include Neuralink and Boring Company and in November, Musk announced how investors for X would have 25% ownership at X.AI which again is a major deal.
While he admitted that it’s a completely different entity from X Corp, the goal is to work side by side with X ( previously known as Twitter) to achieve big advancements with the firm’s mission, as revealed on the X.AI website.

In case you did not know, those considered to be working for X.AI include members who used to be a part of Google Research, Tesla, DeepMind, Twitter, and even OpenAI. Moreover, we’ve seen them take part in massive projects like AlphaCode and top-of-the-range chatbots of OpenAI including GPT-4 as outlined in their profiles on LinkedIn.

As per filings, Musk added his X.AI firm in March this year in the state of Nevada.

And when it comes to financing for the startup, the sales were in line with the timeframe of Musk’s arrival at this year’s DealBook Summit and that’s where he made the grand unveil of letting advertisers go after campaign suspensions seen across X.

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