Elon Musk’s xAI files with SEC for private sale of $1B in unregistered securities

Regulation

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. 5.

xAI filed the SEC’s Form D to allow it to engage in the private sale of securities without registration. The form is used to comply with Regulation D of the Securities Act of 1933, which provides exemptions to the standard rules. On the form, Musk is listed as the executive officer and director of the business.

Access to Grok is currently severely limited. Source: x.ai

The xAI Form D further clarifies that the securities will be sold to accredited investors with restrictions on their resale under Rule 506(b). The form also indicated that $134.7 million in such securities have already been sold, with the first sale taking place on Nov. 29. Thus, the company is seeking to raise $1 billion.

Related: Elon Musk AI project-inspired memecoin ‘Grok’ falls 74% on creator scam claim

XAI’s product, a chatbot called Grok, has not yet made its public debut, although there is a waitlist to use the prototype. Its website described Grok in a post dated Nov. 4 as “a very early beta product” and added:

“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. Musk was also a co-founder of ChatGPT, but left the company.

Magazine: Outrage that ChatGPT won’t say slurs, Q* ‘breaks encryption’, 99% fake web: AI Eye

Products You May Like

Articles You May Like

Ripple Stablecoin RLUSD Is A ‘Trojan Horse’ For DeFi And Banking, Claims Venture Capitalist

4 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *