Elon Musk's xAI Wants To Raise $1 Billion From IPO

xAI Corp, the artificial intelligence startup founded by Tesla CEO and social network X boss Elon Musk, is planning to raise $1 billion through an initial public offering (IPO), according to records submitted to the US Securities and Exchange Commission (SEC).

The company is known to have raised $134.7 million from an IPO campaign with a total value of $1 billion. The minimum investment amount for an outside investor is set at 2 million USD.

The filing also states that Elon Musk, who took over Twitter and changed its name to X, is also the CEO and director of xAI. Jared Birchall, who has served as CEO of companies such as Goldman Sachs, Merrill Lynch and Morgan Stanley, will manage Elon Musk’s family office.

In April 2023, when Elon Musk merged Twitter into X Corp. And registering xAI as an artificial intelligence startup, he also founded xAI in July 2023. In November, xAI introduced Grok, an AI chatbot that competes directly with OpenAI’s ChatGPT, for users who subscribe to the X Premium+ package for $16/month.

According to Insider, “The opportunity to build a billion-dollar AI business has never seemed easier than it does for entrepreneurs aspiring to become the next Sam Altman.”

Elon Musk has become a familiar face in the cryptocurrency industry. And his every move can often affect the price of coins in the market. Tesla, which he owns, was also one of the first companies to announce a major investment in Bitcoin and has not made any BTC purchases or sales in the last 5 quarters.

Elon Musk also frequently mentions Dogecoin (DOGE) on his personal social media channels and has launched the ability to accept payments in DOGE on his platforms.

Like many times before, DOGE’s price rose sharply following the news of xAI raising capital from an IPO, adding to the overall market rally. The memecoin has increased more than 5% within 24 hours and is currently trading at around $0.096 at the time of writing.

4h chart of the DOGE/USDT pair on Binance at 04:00 AM on December 6, 2023 (UTC)