Elon Musk’s Artificial Intelligence Company, xAI, Aims to Raise $1 Billion in Investments for its New Chatbot, Grok AI
Since its creation in April, xAI has focused on the development of Grok AI, a chatbot that draws on data from the X platform. The company, created by Elon Musk, has set the ambitious goal of raising up to a billion dollars in investments for its financing. According to a recent company presentation before the Securities and Exchange Commission (SEC), xAI has already achieved a contribution of $134.7 million towards this goal.
The company’s mission is to “understand the true nature of the universe,” reflecting Musk’s philosophical and scientific scope within the artificial intelligence market. In line with these aspirations, Grok AI was developed as a chatbot that takes advantage of real-time data from the X platform. However, it is important to note that xAI operates independently of X Corp., the parent company of the X platform.
Accessibility to the model is restricted to users with a Premium Plus subscription on the social network, indicating a gradual and exclusive launch strategy. The financing plan outlined by xAI stipulates that the company is about to sell some $865.3 million in shares and securities, with a minimum capital investment of $2 million from external investors.
The company has also secured the rest of the $1 billion it intends to raise, as revealed by documentation from the SEC. Notable venture capital firms have declined to comment on possible contributions to xAI.
The company’s aggressive hiring campaign includes the recruitment of artificial intelligence experts from renowned institutions such as DeepMind, OpenAI, Google Research, Microsoft Research, Tesla, and the University of Toronto. This is in line with the company’s broader strategy of generating synergies with other corporations such as X and Tesla to promote new scientific advances through artificial intelligence.
Currently, xAI is focused on enhancing the capabilities of Grok AI, a chatbot that aims to replicate natural human conversations. The select group of 12 artificial intelligence experts working on this project seeks to boost the model’s capabilities by incorporating a more informal tone to effectively simulate human dialogues.