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Elon Musk’s xAI Secures $865.3M in Mega Private Sale, Aims for $1 Billion

Elon Musk’s artificial intelligence modeler, xAI, discloses a private sale agreement.

The deal involves $865.3 million in unregistered equity securities and is revealed through a filing with the United States Securities and Exchange Commission on 5 December.

The filing, submitted in the form of the SEC’s Form D, allows xAI to engage in this private sale without conventional registration.

Within the regulatory filing, Elon Musk is identified as the executive officer and director of xAI, highlighting his central role in the private sale initiative.

The use of Form D is a move to comply with Regulation D of the Securities Act of 1933, which provides exemptions to standard rules.

Strategic Securities Sale

xAI’s Form D specifies that the sale targets accredited investors, with restrictions on resale outlined under Rule 506(b).

Notably, $134.7 million in such securities have already been sold, with the initial transaction occurring on 29 November.

The objective is to raise $1 billion through this private sale.

Artificial Intelligence Race

While xAI’s flagship product, the chatbot Grok, has not yet made its public debut, the company has generated anticipation with a waitlist for the prototype.

Described as “a very early beta product” on the website, Grok possesses real-time knowledge through the X platform (formerly Twitter).

The chatbot aims to answer unconventional questions rejected by most other AI systems.

Elon Musk introduced xAI in July, framing its goal as “understanding the universe” and asserting Grok’s superiority over ChatGPT.

The November online dispute with OpenAI’s CEO Sam Altman involves Elon Musk’s prior co-founding role at OpenAI.

This underscores the competitive landscape and dynamics between xAI and established players in the AI sector.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.