xAI is currently developing the AI chatbot Grok, which is Elon Musk's answer to OpenAI's ChatGPT or Google's Bard.
Elon Musk is looking to raise $1 billion for his artificial intelligence company xAI, and the man responsible for Tesla, X, and SpaceX is seeking this amount to finance his next project.
According to a Securities and Exchange Commission filing, Musk has so far raised about $135 million from four unnamed investors, with his first sale of securities on November 29.
This means that it still needs to raise about $865 million in order to achieve its $1 billion goal.
Musk is an executive and director of xAI, the filing said. The filing also listed among its executives Jared Birchall, a former executive at Goldman Sachs, Merrill Lynch and Morgan Stanley.
xAI is currently developing the AI chatbot Grok, which is Elon Musk's answer to OpenAI's ChatGPT, or Google's Bard.
According to his website, Grok has a rebellious personality and answers interesting questions that other AI chatbots don't handle.
The product has only been in development for two months, and should be released in beta soon for X Premium subscribers.
The AI chatbot is characterized by the fact that it pulls real-time information from X in order to trigger some of its responses, update its knowledge, and improve its responses.
The filing with the US Securities and Exchange Commission states that the minimum investment accepted from any outside investor is $2 million.
“The issuer has entered into a binding and enforceable agreement in order to purchase and sell the remaining total amount to be sold,” the company said in the filing.
It is noteworthy that Elon Musk is one of the founders of the OpenAI organization, although he resigned in 2018 from the board of directors.
Musk has recently criticized OpenAI, especially after it fired and then rehired its CEO, Sam Altman, in November, sparking great confusion and concern within the AI industry.
Raising $865 million is not an easy matter, although Elon Musk is up to the challenge as one of the powerful figures in the technology field, as long as potential investors are not afraid of his way of managing the X platform.