“Spicy” AI chatbot Grok hasn’t been seen by the public yet, but it’ll be worth plenty after this securities issue.
Elon Musk’s X-linked artificial intelligence modeler xAI has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission made on Dec. 5.
XAI filed the SEC’s Form D to allow it to engage in the private sale of securities without registration. The form is used to comply with Regulation D of the Securities Act of 1933, which provides exemptions to the standard rules. On the form, Musk is listed as the executive officer and director of the business.
The xAI Form D further clarifies that the securities will be sold to accredited investors with restrictions on their resale under Rule 506(b). The form also indicated that $134.7 million in such securities have already been sold, with the first sale taking place on Nov. 29. Thus, the company is seeking to raise $1 billion.