Elon Musk’s AI Startup xAI Trying to Raise $1 Billion

Artificial IntelligenceElon Musk has recently announced the launch of xAI, a daring new initiative in the artificial intelligence space. In an attempt to raise up to $1 billion via a stock offering, the business has now registered with the Securities and Exchange Commission (SEC) of the United States. xAI has reportedly already obtained $134.7 million in equity investment out of the planned $1 billion total, according the document submitted on Tuesday.

With the unprecedented success of OpenAI’s ChatGPT, which made its debut last year, and the current upsurge in investor interest in the AI space, xAI‘s funding campaign seems timely. OpenAI’s noteworthy advancements and significant AI market investments may have brought attention to the rising interest in and investment in AI technology.

Since the founding of the business that created ChatGPT in 2015, Musk – a co-founder of OpenAI – has become a prominent player in the AI space. His departure from the board of OpenAI in 2018 marked the end of his connection with the organization, which has been a major factor in the worldwide craze for generative AI technology. His most recent project, xAI, shows his ongoing commitment to and interest in the area.

Combining xAI with X

With the introduction of ‘Grok,’ a chatbot meant to rival OpenAI‘s ChatGPT, xAI grabbed news last month. Additionally, it will compete with Anthropic’s Claude chatbot and Google’s Bard technology. Musk plans to combine this AI business xAI with his social media platform X to expand the site’s functionality and reach, going beyond a purely independent offering. Musk’s plan to include AI into digital communication and interaction would be shown in this integration.

xAI is one of Elon Musk’s many business ventures. Not only does Musk own X (formerly known as Twitter), which he acquired last year, but he also serves as the CEO of Tesla and SpaceX. He also runs the brain-tech business Neuralink and the underground tunnel developer Boring Company.

A month ago, Elon Musk said that X (formerly Twitter) investors will own a quarter of xAI. It seems that xAI will be a separate company from X, but will work closely with X. Alumni from DeepMind, Google Research, OpenAI, Microsoft Research, Twitter, and Tesla are among the people working on xAI.