Elon Musk's xAI Has Raised $500 Million, Targets $15-$20 Billion Valuation

Elon Musk's AI startup xAI has raised $500 million and is targeting a valuation of $15-$20 billion. xAI's main product is the AI chatbot Grok, which accesses tweets from X around the world and is programmed to be as snarky as possible. The company was Elon Musk's answer to OpenAI, of which he was also a co-founder. However, he later left over disagreements with Sam Altman and others over how to develop and monetise the technology they were building. Late last year, Elon Musk filed an SEC Form D for xAI, which allows the sale of securities without full registration, provided the sale remains private. The document suggests that up to $1 billion worth of equity in the company will be sold, of which more than $134 million has already been made. Despite the controversial nature of this new AI platform, the founder's reputation makes it likely that interest in the sale will be high even if it is closed to retail investors.