Elon Musk's artificial intelligence company, xAI, is aiming to raise seven figures in what is reportedly the start-up's first known funding round.
In a Securities and Exchange Commission filing Tuesday, X.AI Corp. (dba xAI) revealed it is looking to raise $1 billion in an equity offering, with more than $134 million already sold. The company said it "has entered into a binding and enforceable agreement for the purchase and sale" of the total $865 million remaining to be sold.
Citing a source, the New York Post reported that xAI is "raising money at a valuation that will likely be between $4 billion and $10 billion," adding that the revelation is the first known fundraising round for Musk's start-up.
GOOGLE LAUNCHES ADVANCED AI MODEL ‘GEMINI’
The filing comes a month after Musk announced that xAI's "Grok" chatbot, which aims to rival OpenAI's ChatGPT and Google's Bard, had entered the beta testing phase.
Musk, who co-founded ChatGPT-maker OpenAI in 2015 and stepped down from its board in 2018, launched xAI to compete with ChatGPT and other Big Tech heavyweights like Google in the AI space. He has been critical of the Big Tech firms’ AI efforts regarding what he calls censorship and said he would launch a maximum truth-seeking AI that tries to understand the nature of the universe.
SAM ALTMAN NAMED AS TIME MAGAZINE'S CEO OF THE YEAR
Since launching xAI in July, he has staffed the company with personnel from Google’s DeepMind unit, Microsoft and other top AI research firms.
Musk is also the CEO of Tesla and the owner of the X social media platform.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
xAI is distinct from the X social media platform, although the two firms work closely together, and xAI also works with Tesla.
FOX Business' Eric Revell contributed to this report.
