Elon Musk-Backed X.AI Files With SEC to Raise Up to $1B in Equity Offering
The filing says the company has already sold $134.7 million of the securities.
Updated Mar 8, 2024, 6:16 p.m. Published Dec 5, 2023, 7:11 p.m.
X.AI Corp., backed by Tesla CEO and X owner Elon Musk, is raising up to $1 billion in equity securities offering, according to a regulatory filing.
The company has already sold $134.7 million of the securities, with another $865.3 million remaining to be sold, according to a filing made with the U.S. Securities and Exchange Commission (SEC). The minimum investment accepted from any outside investor is $2 million.
The filing says that Musk, who took over Twitter and renamed it X, is an executive officer and director of X.AI.
Also listed as an executive is Jared Birchall, a former Goldman Sachs, Merrill Lynch and Morgan Stanley executive who is reported to be the manager of Elon Musk's family office.
CoinDesk previously reported that in April 2023, when Musk merged Twitter into X Corp., he also registered X.AI as an artificial intelligence startup. The executive then established xAI, his own company, to "understand the universe."
The announcement prompted some crypto users to spin up scores of "X" tokens on multiple blockchains.
Elon Musk, artificial intelligence and crypto
Musk is closely followed in the crypto industry since Tesla was one of the first big corporate buyers of bitcoin [BTC] and since X is such a prominent venue for information exchange among blockchain companies.
The billionaire entrepreneur has also posted frequently about dogecoin [DOGE], the Shiba Inu breed-themed meme token, prompting occasional speculation that the digital asset might somehow be adopted or promoted by Musk as a form of payment.
The DOGE price jumped after CoinDesk reported the news. The token was up 7.4% in the past 24 hours as of press time.
Bradley Keoun
Bradley Keoun is CoinDesk's managing editor of tech & protocols, where he oversees a team of reporters covering blockchain technology, and previously ran the global crypto markets team. A two-time Loeb Awards finalist, he previously was chief global finance and economic correspondent for TheStreet and before that worked as an editor and reporter for Bloomberg News in New York and Mexico City, reporting on Wall Street, emerging markets and the energy industry. He started out as a police-beat reporter for the Gainesville Sun in Florida and later worked as a general-assignment reporter for the Chicago Tribune. Originally from Fort Wayne, Indiana, he double-majored in electrical engineering and classical studies as an undergraduate at Duke University and later obtained a master's in journalism from the University of Florida. He is currently based in Austin, Texas, and in his spare time plays guitar, sings in a choir and hikes in the Texas Hill Country. He owns less than $1,000 each of several cryptocurrencies.
