Elon Musk-backed xAI Notifies US SEC of Its Intentions to Raise $866.3M through Equity Offering

Elon Musk-backed xAI Notifies US SEC of Its Intentions to Raise $866.3M through Equity Offering

UTC by Steve Muchoki · 3 min read
Elon Musk-backed xAI Notifies US SEC of Its Intentions to Raise $866.3M through Equity Offering
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xAI, the Nevada-based tech company, has so far raised $134 million in its bid to achieve $1 billion to further improve AI tools used by GROK.

In a bid to grow its market share and infrastructure, Elon Musk-backed xAI Corp. has filed with the United States Securities and Exchange Commission (SEC) to raise an extra $865.4 million through equity sales. The Nevada-based technology company notified the US SEC through Form D, which is yet to be revised, that it has already sold offerings worth about $134.6 million. The company highlighted that the minimum investment that will be accepted in the offering is $2 million.

xAI and the AI Boom

Musk has dedicated his time to improving global technology through his family of companies. After leaving the OpenAI team due to internal conflicts, Musk is now committed to outperforming the existing artificial intelligence companies including Google AI. Moreover, xAI is tapping into the success of the X platform, which provides timely updates to teach the GROK model how to respond and ask questions that are human-relatable.

Earlier last month, Musk promised that all X premium+ subscribers would have access to xAI’s GROK system after the beta version was complete. The GROK launch has received significant hype from Musk, who has a massive X following, among other influencers. Meanwhile, xAI intends to make more hirings in a bid to develop competing products in the future.

“At the frontier of deep learning research, reliable infrastructure must be built with the same care as datasets and learning algorithms. To create Grok, we built a custom training and inference stack based on Kubernetes, Rust, and JAX,” the company noted.

Worth noting that xAI has named Jared Birchall as the corporate secretary, according to the SEC filing that also listed Musk as an executive officer and director.

The artificial intelligence boom has fueled the growth of companies focused on manufacturing semiconductor chips like Nvidia Corp (NASDAQ: NVDA), which has eclipsed over $1 trillion in market valuation.

On the Flipside

The growth of xAI’s  GROK has inspired a new meme coin dubbed Grok (GROK) on the Ethereum and Binance Chain. Notably, the GROK meme coin has attracted notable attention from crypto traders as it has verified smart contracts with liquidity in WETH and WBNB of nearly $6 million on various DeFi platforms. According to our latest market data, GROK price exchanged hands around $0.015 on Wednesday, up more than 35 percent in the past 24 hours.

The meme coin has a market cap of about $94 million and an average 24-hour trading volume of around $58 million, indicating higher demand for the low-cap altcoin. However, it is worth noting that X platform has suspended the account associated with GROK meme coin for violating its rules.

Artificial Intelligence, Business News, Investors News, News, Technology News
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