Elon Musk’s artificial intelligence startup xAI is raising as much as $1 billion through an equity offering as the corporate ramps up efforts to catch rivals Google and ChatGPT creator OpenAI, a filing revealed Tuesday.
The filing with the Securities and Exchange Commission notes that xAI has already raised $134.7 million against the full offering of $1 billion.
The company said it has “entered right into a binding and enforceable agreement for the acquisition and sale” of the remaining $865.3 million.
Musk — who also owns X Corp., the parent of the social media site X — is raising money at a valuation that can likely be between $4 billion and $10 billion, a non-public placement source told The Post.
This is his first known fund-raising round for xAI, the source added.
Last month, xAi released an early beta version of its Grok chatbot, a large-language model said to be modeled after “The Hitchhiker’s Guide to the Galaxy” and integrated into X.
Musk has described xAI’s first product offering as “the most effective that currently exists.”
The world’s richest man, who’s liable to sharing necessary updates about his various business interests via his X account, has yet to comment on the filing or his plans for the raised money.
Musk has not disclosed specific outside investors — though he previously noted in a Nov. 19 post that X Corp. investors “will own 25% of xAI.”
The SEC filing lists Musk as the manager officer and director at xAI, while his longtime fixer Jared Birchall listed as its “corporate secretary.”
The $1 billion raise is a component of a rapid ramp-up at Musk’s AI startup, which he rolled out in July.
AI researcher Igor Babuschkin, formerly of Google-owned DeepMind, is leading xAI.
The startup is working closely with Musk’s other firms, including Tesla and X, formerly Twitter.
Musk has argued that current chatbots exhibit a left-wing bias and has espoused the necessity for what he called “TruthGPT” that shall be a “maximum truth-seeking AI that tries to grasp the character of the universe.”
It couldn’t immediately be learned if xAI plans to hunt greater than $1 billion, though the source said there are expectations that Musk will come to non-public markets for more funds in January.
Musk also is predicted to lift money for 2 of his other firms, SpaceX and Boring Company, next month, the source said.