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AI Firm Founded by Elon Musk, X.AI, Seeks to Secure $1 Billion in New Funding

X.AI, the artificial intelligence startup spearheaded by Elon Musk, has recently filed with the SEC to initiate an equity offering, seeking to raise up to a substantial $1 billion in funding. The company has already secured a notable sum of nearly $135 million from four investors, with the initial sale taking place on November 29. According to the filing, there exists a "binding and enforceable agreement" for the acquisition of the remaining shares.

This endeavor by X.AI follows Elon Musk's announcement of the AI startup in July, positioning its mission as an exploration into understanding the true nature of the universe, as articulated on its official website. Notably, the company introduced a chatbot named Grok last month, drawing inspiration from "The Hitchhiker's Guide to the Galaxy." Grok, having undergone two months of training, possesses real-time knowledge of the internet, distinguishing itself with a touch of humor and a rebellious streak.

X.AI explicitly states on its website that Grok is designed to answer questions with wit and is unafraid to tackle spicy inquiries often rejected by other AI systems. The company aims to stand out in the competitive landscape, positioning itself against notable players such as OpenAI's ChatGPT, Google's Bard technology, and Anthropic's Claude chatbot.

This initiative is yet another addition to Elon Musk's extensive portfolio of companies. Beyond X.AI, Musk is actively involved in steering Tesla, SpaceX, and holds ownership of Twitter, which he acquired last year. He is also at the helm of the Boring Company, focused on underground tunnel development, and Neuralink, a brain-tech startup.

X.AI's foray into the AI space is reinforced by its team, comprising individuals with backgrounds from DeepMind, OpenAI, Google Research, Microsoft Research, Twitter, and Tesla. These experts have previously worked on notable projects such as DeepMind's AlphaCode and OpenAI's GPT-3.5 and GPT-4 chatbots, according to their LinkedIn profiles.

Elon Musk incorporated X.AI in Nevada in March, as per official filings. During a Tesla earnings call in July, Musk shed light on the genesis of X.AI, emphasizing that some of the world's best AI engineers and scientists preferred joining a startup over an established company like Tesla.

The filing for X.AI's financing coincided with Musk's appearance at the 2023 DealBook Summit, where he expressed his sentiments to advertisers who had suspended campaigns on X, illustrating the dynamic landscape and challenges faced by the venture.


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