Elon Musk's X.ai Set To Raise $1 Bln In Equity Offering

(RTTNews) - Elon Musk's artificial intelligence startup X.ai has filed with the U.S. Securities and Exchange Commission to raise up to $1 billion in an equity offering. The minimum investment accepted from any outside investor is $2 million.

According to the filing, the company has already raised $134.68 million from the sale of securities to four investors, with the first sale happening on November 29. The balance of $865.32 million is remaining to be sold and the filing reveals that the issuer has entered into a binding and enforceable agreement for the purchase and sale of the total remaining to be sold.

The filing also reveals Musk as an executive officer and director of X.ai and Jared Birchall as corporate secretary. Birchall is a former Goldman Sachs, Merrill Lynch and Morgan Stanley executive. X.ai is based in Burlingame, California.

Musk announced the company as his new AI business at the Twitter Spaces event in early July this year and said the company seeks to "understand the true nature of the universe."

Musk formed X.ai as a competitor to OpenAI, which he co-founded in 2015 and left it in 2018. He later wrote in a small post on X (formerly Twitter) on November 19 that, "X Corp investors will own 25% of xAI."

Apart from founding X.AI, Musk is the founder, chairman, CEO and chief technology officer of SpaceX; CEO of Tesla, Inc.; owner, chairman and CTO of X Corp.; founder of the tunnel developer Boring Co.; co-founder of brain-tech startup Neuralink and OpenAI; and president of the Musk Foundation.