xAI Seeking $1 Billion in Equity Offering
Elon Musk's artificial intelligence start-up, xAI, is currently in the process of raising $1 billion from investors through an equity offering, as per a filing with the Securities and Exchange Commission.
Since November 29, the start-up has already managed to secure $135 million from investors. In the filing, xAI mentioned that they have a binding and enforceable agreement for the purchase of the remaining shares.
xAI has set a minimum investment for outsiders at $2 million. The total amount remaining to be sold exceeds $865 million; however, the filing does not disclose the identities of the investors involved in the purchase.
Earlier this year, Musk, the CEO of Tesla and the owner of X (formerly Twitter), established xAI to keep up with other companies operating in the generative AI field, such as OpenAI (which he co-founded). Just last month, xAI unveiled its chatbot called Grok.
xAI is facing competition from rival chatbots like OpenAI's ChatGPT, Google's Bard, and Anthropic's Claude. OpenAI has received investments worth billions from Microsoft, while Alphabet's Google and Amazon have also invested billions in Anthropic.
According to xAI's website, the company is actively hiring for various positions in San Francisco, including engineering roles and an "AI Tutor." xAI emphasizes that while it is a separate entity from Musk's X Corp., it will closely collaborate with X, Tesla, and other companies to advance their mission.
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