X.AI, Backed by Elon Musk, Plans to Raise $1 Billion in Equity
One month after the release of its Grok AI chatbot on Twitter, X.AI, an AI startup supported by Elon Musk, has filed a notice with the Securities and Exchange Commission (SEC) indicating its intention to raise up to $1 billion in equity funding.
The SEC filing reveals that the offering will provide equity to investors in the technology sector who have a minimum of $2 million to invest. The total offering target is set at $1 billion, and since the first sale on November 29, $134,679,312 in equity has already been purchased.
The filing lists Elon Musk and X.AI corporate secretary Jared Birchall as the only individuals involved. However, they have chosen not to disclose the company’s revenue range. The sales will be brokered in California and Texas.
Musk’s Influence in Crypto and AI Industries
Elon Musk holds significant influence within both the cryptocurrency and AI industries. While AI has surpassed crypto in growth and investor interest since the launch of OpenAI’s ChatGPT last year, Musk’s involvement bridges these two sectors.
Although Musk has ruled out issuing a digital asset based on Twitter, his support for Dogecoin has consistently impacted its market value. Currently facing a class-action lawsuit regarding his Dogecoin tweets, plaintiffs claim that Musk’s actions were part of an insider trading scheme to manipulate the coin’s value.
X.AI’s Rollercoaster Ride with Grok Token
Following the introduction of Grok, the unofficial GROK token experienced extreme volatility. It saw significant gains before crashing due to allegations that it was launched by a known scammer.
Hot Take: X.AI Aims to Secure Substantial Equity Funding
X.AI, backed by Elon Musk, has filed a notice with the SEC to raise up to $1 billion in equity funding. The offering targets investors in the technology sector who have a minimum of $2 million to invest. With $134,679,312 already purchased since the first sale, the filing lists Musk and Jared Birchall as the individuals involved. Musk’s involvement in both the cryptocurrency and AI industries adds significance to this funding round. X.AI’s Grok token faced turbulence due to allegations of its association with a scammer. Overall, X.AI’s goal is to secure substantial funding for its AI ventures.
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