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Musk’s AI startup ‘X.AI’ applies for public offering worth 1.3 trillion won

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Up to $1 billion goal… $135 million already raised
X.AI’s ‘Grock’ competes with ChatGPT, Bard, Claude chatbots, etc.

Elon Musk’s artificial intelligence (AI) startup X.AI applied for an initial public offering worth up to $1 billion (about 1.3 trillion won) with the U.S. Securities and Exchange Commission (SEC) on the 5th (local time).

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According to CNBC, X.AI has already raised about $135 million (about 170 billion won) from four investors, and the first sale took place on November 29. The report said it had entered into a “binding and enforceable agreement” to purchase the remaining shares.

X.AI, which Musk announced last July, seeks to “understand the true nature of the universe.” The company last month unveiled Grok, a generative AI modeled after “The Hitchhiker’s Guide to the Galaxy.” X.AI claims that the chatbot has undergone two months of training and has real-time knowledge of the internet.

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On its website, He also expressed confidence, saying, “We can answer difficult questions that most other AI systems reject.”

X.AI’s Grok aims to compete with OpenAI’s ChatGPT, Google Bard, and Antropic Claude chatbot. Musk participated as a co-founder of OpenAI, but left in 2018 due to conflict with Sam Altman.

Musk is known to have secured thousands of high-output graphics processing units (GPUs), the chips needed to build large-scale language models, from Nvidia early this year.

Musk is the CEO of Tesla and SpaceX, and also owns X (formerly Twitter), which he acquired last year. Neuralink, a neuroscience startup, was also established.

Musk said last month that X investors would own a 25% stake in X.AI.

“Although we are a separate company from Company X, we will work closely with X, Tesla, and other companies to advance our mission,” X.AI emphasized on its website.

According to the report, Musk founded X.AI in Nevada last March.

Source: Donga

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