Elon Musk's artificial intelligence business, xAI, said this week that it is seeking up to $7 million in funding, but the tech tycoon insists the company is not raising funds "right now."
X.AI Corp. (dba xAI) announced in a Securities and Exchange Commission filing Tuesday that it is trying to raise $1 billion in a stock offering, with more than $134 million already sold. According to the paper, the corporation "has entered into a binding and enforceable agreement for the purchase and sale" of the remaining $865 million to be sold.
According to an SEC filing, Elon Musk's artificial intelligence business xAI is aiming to raise $1 billion. (Photo credit: Jaap Arriens / NurPhot / File / Getty Images))
In response to Deepwater Asset Management's Gene Munster's post on X about the fundraising on Wednesday, Musk stated, "We are not raising money right now."
According to Munster's essay, Musk's fundraising indicated that he wished to compete with OpenAI and Anthropic.
According to the New York Post, xAI is "raising money at a valuation that will likely be between $4 billion and $10 billion," and this is the first known fundraising round for Musk's start-up.
GOOGLE ANNOUNCES THE 'GEMINI' ADVANCED AI MODEL
The filing comes just a month after Musk announced that xAI's "Grok" chatbot, which hopes to compete with OpenAI's ChatGPT and Google's Bard, had entered beta testing.
Musk, who co-founded ChatGPT-maker OpenAI in 2015 and stepped down from its board in 2018, formed xAI to compete in the AI field with ChatGPT and other Big Tech heavyweights such as Google. He has criticized Big Tech businesses' AI efforts in terms of what he considers censorship, and he has stated that he will create a maximal truth-seeking AI that attempts to grasp the nature of the cosmos.
TIME MAGAZINE NAMES SAM ALTMAN CEO OF THE YEAR
He has staffed xAI with personnel from Google's DeepMind unit, Microsoft, and other prominent AI research businesses since its inception in July.
Musk is also the founder and CEO of Tesla, as well as the owner of the X social media platform.
xAI is distinct from the X social networking platform, though the two companies collaborate closely, and xAI also collaborates with Tesla.