Elon Musk's company specializing in artificial intelligence, xAI, has reached an agreement for the private sale of equity securities valued at $865.3 million.
Elon Musk's company specializing in artificial intelligence, xAI, has reached an agreement for the private sale of equity securities valued at $865.3 million. The agreement was disclosed in a filing submitted to the United States Securities and Exchange Commission (SEC) on December 5. The filing identifies Elon Musk as the executive officer and director of xAI.
As outlined in the Form D, the equity securities will be exclusively offered to accredited investors, subject to restrictions on resale according to Rule 506(b). The document also reveals that a total of $134.7 million worth of such securities have already been sold, with the initial sale taking place on November 29. The company has set a target of raising $1 billion in total.
xAI's leading product, a chatbot named Grok, has yet to be publicly launched, but there is a waitlist available for individuals interested in accessing the prototype. Described as an "early beta product" on the company's website, Grok boasts a distinctive advantage by having real-time access to knowledge from the X platform (formerly known as Twitter). It also claims to be capable of addressing controversial questions that are typically rejected by most other AI systems.
Elon Musk introduced xAI in July, emphasizing its mission to gain a comprehensive understanding of the universe. The launch of Grok has also inspired a memecoin aptly named Grok, which experienced a massive rally in early November. GROK is currently trading at $0.01463, down over 50% from its highs.
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