Elon Musk’s xAI Seeks to Raise $1 Billion in Equity Offering

Elon Musk‘s artificial intelligence company, xAI, is seeking to raise $1 billion in equity funding from investors. The funding round is expected to take place in the near future, and Musk’s team is reportedly shopping the deal around. The startup is valued at more than $10 billion, and the funding round could potentially boost its value even higher. This move demonstrates Musk’s ambition to revolutionize the AI industry and solidify his position as a key player in the field.

However, potential investors may be cautious due to Musk’s controversial management style and the perceived mismanagement of X. Musk has already raised nearly $135 million, according to a document filed with the Securities and Exchange Commission. The filing does not include the names of investors, but Axios earlier reported on the filing. Musk created xAI earlier this year to compete with other generative AI companies, including OpenAI, where Musk was a co-founder.

xAI has debuted one product so far, a chatbot called Grok, trained on data from the X social network, which Musk also owns. It is “designed to answer questions with a bit of wit and has a rebellious streak,” according to the company website. In November, Musk said that equity investors in X, formerly called Twitter, will own 25% of xAI. He also said that users of the social network who sign up for Premium+, a subscription priced starting at $16 per month in the US, will get access to Grok.

Elon Musk’s xAI startup is seeking to raise $1 billion in equity funding from investors, which could potentially boost its value even higher. The funding round is expected to take place in the near future, and Musk’s team is reportedly shopping the deal around. While Musk’s controversial management style and the perceived mismanagement of X may make potential investors cautious, this move demonstrates Musk’s ambition to revolutionize the AI industry and solidify his position as a key player in the field.