February 24, 2024
Elon Musk has heated up the AI ​​wars. He is demanding $1 billion for xAI.

  • Elon Musk is looking to raise up to $1 billion for his AI startup xAI, according to an SEC filing.
  • To date, XAI has raised about $135 million in equity financing, the filing said.
  • Only investments worth at least $2 million will be accepted.

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Elon Musk is planning to raise up to $1 billion to help fund his AI startup xAI.

Musk’s search for new funding comes after the Tesla CEO and co-founder launched xAI over the summer. Its mission? “To advance our collective understanding of the universe,” according to a statement on the company’s website.

The search for new funding comes at a competitive time for artificial intelligence: Already, OpenAI’s ChatGPT has taken the tech world – and beyond – by storm. (Microsoft has reportedly invested at least $10 billion in privately held OpenAI.) Google has launched its own chatbot, Bard. And Meta has released Llama 2.

On Musk’s part, he launched the AI ​​chatbot Grok under the xAI umbrella in November.

This comes just four months after they launched xAI. So far, only people who pay for X, formerly known as Twitter — and who are accepted for the chatbot’s early-access program — have access to Grok.

And this isn’t Musk’s first foray into AI: Musk actually co-founded OpenAI with Sam Altman in 2015, years before the billionaire launched xAI.

But in 2018, Musk left OpenAI because his offer to run the company was rejected, he said. He withdrew his funding and left the board of OpenAI. Since then, Musk and Altman have publicly traded comments.

(Since then, Altman was also fired from OpenAI in November, but invited back later in the month.)

Seeking the latest equity investment, Musk’s company filed papers with the Securities and Exchange Commission late Tuesday. This comes because there is a lot of money being spent around AI: OpenAI is reportedly seeking a share sale that could be valued at $90 billion.

So far, xAI has raised about $135 million in equity financing, with more than $865 million left to raise, according to the filing.

If you’re interested, be prepared to invest at least $2 million, the SEC filing said. The filing said that this is the minimum amount that xAI will consider for accepting investments.

xAI did not immediately respond to Business Insider’s request for comment ahead of publication.

Source: www.businessinsider.com

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