Elon Musk clarifies xAI’s funding plans amidst SEC filing

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    Elon Musk

    7th December 2023 – (California) Elon Musk stated on Wednesday that his artificial intelligence company, xAI, is not currently seeking to raise funds. This comes in response to the company’s recent filing with the U.S. Securities and Exchange Commission (SEC) disclosing its intention to raise up to $1 billion through an equity offering.

    According to the filing, xAI has already secured $134.7 million in equity financing out of the total offering amount of $1 billion. However, Musk’s response to a post by Gene Munster of Deepwater Asset Management on the financing indicated that the company is not currently in the process of raising money.

    Munster’s original post suggested that the fundraising was driven by Musk’s desire to compete with OpenAI and Anthropic. However, it should be noted that Reuters has not independently verified whether xAI is actively seeking funding at this time.

    This year, investments in AI-related startups have seen a significant increase, with the success of chatbot ChatGPT and its parent company OpenAI’s $10 billion fundraising round led by Microsoft.

    xEAI was launched by Elon Musk in July of this year as a response to the AI efforts of Big Tech companies, which he has criticized for excessive censorship and insufficient safety measures.