Elon Musk’s xAI files with SEC for private sale of $1B in unregistered securities
“Spicy” AI chatbot Grok hasn’t been seen by the public yet, but it’ll be worth plenty after this securities issue.
Elon Musk’s X-linked AI modeler xAI has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission (SEC) made on Dec.
xAI filed the SEC’s Form D to allow it to engage in the private sale of securities without registration.
The xAI Form D further clarifies that the securities will be sold to accredited investors with restrictions on their resale under Rule 506(b).
XAI’s product, a chatbot called Grok, has not yet made its public debut, although there is a waitlist to use the prototype.
“A unique and fundamental advantage of Grok is that it has real-time knowledge of the world via the X [formerly Twitter] platform. It will also answer spicy questions that are rejected by most other AI systems.”
Musk announced the launch of xAI in July and claimed its goal was to “understand the universe.” He claimed Grok would perform better than ChatGPT and in November got into an online squabble over it with ChatGPT co-founder and CEO at the time Sam Altman.