Elon Musk’s artificial intelligence startup, X.AI, wants to raise up to $1 billion by selling shares. So far, they’ve received around $135 million from four investors. The first sale took place on Nov. 29, and they have a solid agreement to sell the rest of the shares. They recently filed this information with the SEC.
Elon Musk’s AI startup, announced in July, aims to “understand the true nature of the universe,” as stated on its website. Recently, the company launched a chatbot called Grok, inspired by “The Hitchhiker’s Guide to the Galaxy.” Grok has undergone two months of training and supposedly has real-time knowledge of the internet, according to the company.
Grok by X.AI
X.AI describes Grok as a chatbot with a sense of humor and a rebellious side. The company advises not to use it if you dislike humor, as Grok is designed to answer questions in a witty way. Additionally, it claims that Grok can tackle spicy questions that many other AI systems might reject.
X.AI, through Grok, intends to enter direct competition with companies like OpenAI, the creator of ChatGPT. Elon Musk was involved with OpenAI but left in 2018 due to a conflict with co-founder Sam Altman. X.AI will also be competing with Google’s Bard technology and Anthropic’s Claude chatbot.
Reportedly, earlier this year, Musk managed to acquire thousands of high-powered graphics processing units (GPUs) from Nvidia. These chips are crucial for constructing large language models.
Elon Musk’s Business World and its Collaborations
X.AI is part of Elon Musk’s portfolio of companies where he holds ownership or leadership positions. Apart from overseeing X.AI (formerly Twitter), which he acquired last year, Musk serves as the CEO of Tesla and SpaceX. He is also involved in projects like the Boring Company, focusing on underground tunnels, and Neuralink, a startup centered on brain technology.
In a recent statement, Musk mentioned that investors in X (formerly Twitter) would possess a 25% stake in X.AI. According to X.AI’s website, they are an independent company from X Corp but collaborate closely with X (Twitter), Tesla, and other companies to advance their mission.
The team at X.AI consists of individuals who have previously worked at DeepMind, OpenAI, Google Research, Microsoft Research, Twitter, and Tesla. Their collective experience includes contributing to projects such as DeepMind’s AlphaCode and OpenAI’s GPT-3.5 and GPT-4 chatbots, as indicated by their LinkedIn profiles.
Elon Musk Sets Up X.AI in March
In March, Elon Musk officially established X.AI as a company in Nevada, according to official filings.
During a Tesla earnings call in July, Elon Musk addressed analysts’ concerns about X.AI potentially competing with Tesla. Musk explained that some of the world’s top AI engineers and scientists were willing to join a startup rather than a larger, more established company like Tesla. In his view, it was preferable for them to join a startup under his leadership than to work elsewhere. This was the origin story of X.AI, according to Musk.
Regarding X.AI’s financing, the initial sale happened around the same time as Musk’s appearance at the 2023 DealBook Summit. During the summit, Musk had a strong message for advertisers who had suspended campaigns on X, telling them to “go f*** yourself.” The suspension of campaigns by numerous advertisers followed Musk’s posting and amplification of antisemitic comments.
Elon Musk’s X.AI project is on the move, looking to raise a hefty $1 billion by selling shares. With a solid financial foundation and the introduction of the clever Grok chatbot, X.AI is gearing up to compete in the world of artificial intelligence, led by Musk and a skilled team.