Elon Musk's AI Firm xAI Aims to Raise $1 Billion Through Private Sale of Unregistered Securities
Summary:
Elon Musk's artificial intelligence venture, xAI, plans to privately sell unregistered equity securities worth $865.3 million. The company had already sold $134.7 million in securities as it aims to raise a total of $1 billion. The company has yet to officially launch its AI chatbot product, Grok. xAI filed with the U.S. Securities and Exchange Commission using Form D to conduct the sale without registration, adhering to the Securities Act of 1933.
xAI, a company that operates in the artificial intelligence domain under the leadership of Elon Musk, has announced plans to privately sell unregistered equity securities totaling $865.3 million, as per a recent filing made with the U.S. Securities and Exchange Commission on December 5. To facilitate the security sale without the need for registration, xAI used SEC's Form D, complying with Regulation D of the 1933 Securities Act that offers certain exemptions. Musk's role in xAI is listed as both the executive officer and the company's director on the form. As stated in the form, the plan is to sell these securities to accredited investors under Rule 506(b), with some limitations on resale. The document also disclosed that sales of $134.7 million of such securities had already occurred, the first of which dated back to November 29, which means xAI plans to raise funds totaling $1 billion.
Though not yet launched publicly, xAI's main product, an AI chatbot named Grok, does have a prototype with a waitlist. According to a blog post on November 4, Grok is an early beta product with the unique capability to stay updated in real-time about the world, using the X platform (previously known as Twitter). Implying the difference from other AI systems, it promises to answer even sensitive queries usually declined by other AI operators.
Musk first introduced xAI to the world in July with an objective to "understand the universe." He projects Grok's capabilities to surpass those of ChatGPT and had a public disagreement in November about this with OpenAI's co-founder and CEO Sam Altman, a company Musk also co-founded before his departure.
Other related news discusses accusatory rumors of the newly launched memecoin named 'Grok' by Musk, suffering a 74% decrease due to scamming allegations involving its creator.
Published At
12/6/2023 12:45:58 AM
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