Elon Musk is looking to raise US$1 billion (S$1.34 billion) for his artificial intelligence (AI) start-up XAI, hoping to build the company into a rival to AI giant OpenAI.
The company, which was formed in July, has raised nearly $135 million from four investors and plans to raise a total of $1 billion, according to a filing with the U.S. ** Exchange Commission on Tuesday (Dec. 5).
It is worth mentioning that the remarks on the document show that an agreement has been reached on all the funds required to raise the target. This suggests that XAI may have completed its $1 billion funding target.
Since the advent of ChatGPT, generative AI technology has been an area of fierce competition among tech giants such as Microsoft and Google, as well as start-ups. Last month, Musk launched a ChatGPT-like AI chatbot Grok. He said Grok was trained on data from the social media platform X (formerly Twitter).
After several investments, OpenAI has secured a $13 billion investment commitment from Microsoft.
Not long before Musk made this round of financing, OpenAI's management experienced a series of "palace fights". CEO Sam Altman returned to the company just days after his fire. The company's planned share sale plan at a valuation of up to $90 billion was also postponed due to management confusion.