"Wow, it looks like Elon Musk founded the xAI company, do you already know?"
In response to a user post on X, billionaire Elon Musk denied the accuracy of a report that claimed his artificial intelligence (AI) firm called xAI generated $500 million of its $1 billion goal through investors.
By observation, xAI is currently in talks for a valuation between $15 billion and $20 billion including potential adjustments in the coming weeks.
The streak, Musk and investors are now not only planning to settle the terms in the near future but also regarding the possibility of getting shared computing power or instead of xAI equity shares.
According to Musk In November 2023, equity investors in X will get a 25% ownership stake in xAI but they are encouraged to invest at least 25% of the amount invested in X then into xAI.
For example, if they invest $10 billion in X then they need to invest $2.5 billion or more of that in xAI.
It is well known that Musk started xAI as an alternative to OpenAI in 2023 and that the xAI chatbot called Grok was powered by social media content from X while its model could secure an agreement for a private sale of $865.3 million in unregistered securities.
xAI's Form D states the securities will be sold to accredited investors subject to resale restrictions under Rule 506(b), so here it can be seen that $134.7 million of securities have been sold with the initial sale occurring on November 29, 2023.
As of this writing, XAI price which peaked at $1.20 on January 17, 2024 has recorded a 3.46% decline back to $0.79 in the past 24 hours with a market cap of $130 million and a 12.56% decline over the past week.
