xAI, Elon Musk's artificial intelligence modeler, secures an agreement for a private sale of $865.3 million in unregistered equity securities, according to an SEC filing.
Regulatory Filing Details Private Sale Terms
The filing with the United States Securities and Exchange Commission (SEC) outlines that xAI is set to engage in a private sale of securities without registration, utilizing Form D to comply with exemptions provided by Regulation D of the Securities Act of 1933. Elon Musk is listed as the executive officer and director of xAI.
CRYPTO BREAKING NEWShttps://t.co/VMCYZcQCw4, Elon Musk's AI Play, Files for $1 Billion Equity Offering. Would-be investors need at least $2 million to participate, with nearly $135 million already sold. check us out @ https://t.co/8dh137buUp pic.twitter.com/HFEwXn9PpO
— InnovatekMobile (@Neome_com) December 5, 2023
Accredited Investors and Resale Restrictions
The Form D specifies that the securities will be sold to accredited investors with resale restrictions under Rule 506(b). The filing indicates that $134.7 million worth of such securities has already been sold, with the initial sale occurring on Nov. 29. The company aims to raise a total of $1 billion.
Introducing Grok: xAI's Chatbot
While xAI's product, a chatbot named Grok, has not been publicly launched, there is a waitlist for the prototype. Grok is described as "a very early beta product" on the company's website, emphasizing its real-time knowledge of the world via the X platform. Notably, it is designed to answer unconventional or "spicy" questions rejected by other AI systems.
xAI's Journey and Musk's Vision
Elon Musk announced the launch of xAI in July, stating its goal was to "understand the universe." Musk claimed that Grok would outperform ChatGPT, leading to an online dispute with OpenAI's co-founder and CEO Sam Altman in November. Musk, a co-founder of OpenAI, left the company previously.
