X.AI, an artificial intelligence startup founded by Elon Musk, has recently submitted a filing with the SEC, expressing its intention to raise $1 billion through an equity offering. The company has already secured approximately $135 million from four investors back in November. The filing indicates a “binding and enforceable agreement” for acquiring the remaining shares.
X.AI’s team includes individuals with backgrounds from renowned institutions such as DeepMind, OpenAI, Google Research, Microsoft Research, Twitter, and Tesla. Their previous projects involve contributions to DeepMind’s AlphaCode and OpenAI’s GPT-3.5 and GPT-4 chatbots.
As stated on its official website, X.AI has a mission to “understand the true nature of the universe”. The company recently introduced a chatbot named Grok, inspired by “The Hitchhiker’s Guide to the Galaxy.” Boasting two months of training, Grok claims to possess real-time knowledge of the internet.
X.AI has positioned Grok to compete directly with leading AI entities such as OpenAI, the creator of ChatGPT, where Musk was involved before a disagreement with co-founder Sam Altman led to his departure in 2018. The competition also extends to Google’s Bard technology and Anthropic’s Claude chatbot.
Earlier this year, Musk reportedly secured a substantial number of high-powered graphics processing units (GPUs) from Nvidia, essential for building large language models like those employed by X.AI. The company emphasizes its independence from X Corp while expressing a commitment to collaborate closely with entities such as Tesla to advance its mission.
X.AI was incorporated in Nevada in March, according to official filings. On a Tesla earnings call in July, Musk addressed concerns about potential competition with Tesla, stating that X.AI provided a platform for top AI engineers who preferred the startup environment.
X.AI stands as one of Musk’s many ventures, alongside his roles in Tesla, SpaceX, Twitter (acquired last year), the Boring Company, and Neuralink. Musk clarified that investors in X would possess a 25% stake in X.AI.
