Dec 5, 2023 - Business

Elon Musk's X.ai aims to raise $1 billion

Photo illustration of Elon Musk against an abstract background.

Photo illustration: Shoshana Gordon/Axios. Photo: Al Drago/Bloomberg via Getty Images

X.ai, Elon Musk's new artificial intelligence company, appears to have raised at least $134.7 million out of a $1 billion target, per a new SEC filing.

Why it matters: Musk announced the endeavor earlier this year as a response to OpenAI, which he co-founded in 2015 but whose board he left in 2018.

Flashback: Musk hasn't said much about how his AI company would be financed, other than a brief post on Nov. 19 that current shareholders in X (formerly Twitter) would get 25% of X.ai.

  • When asked at Axios' AI+ event in San Francisco on Nov. 8 whether their firms are investing in X.ai given their backing of X, Sequoia Capital's Sonya Huang and a16z's Anjney Midha declined to comment.

The intrigue: The filing notes that "[t]he issuer has entered into a binding and enforceable agreement for the purchase and sale of the Total Remaining to be Sold listed above," suggesting that it may in fact have raised the full amount it's seeking.

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