Elon Musk's AI startup seeks to raise $1bn in equity

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Elon Musk's artificial intelligence startup, xAI, is seeking to raise $1bn (£0.8bn) as the world's richest man tries to keep pace with rivals including OpenAI, Microsoft and Google in the race to dominate the field.

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06 Dec 2023

The company has already raised $135m (£107m) from investors and is seeking a total of $1bn in equity financing, according to a filing with the US Securities and Exchange Commission.

The race to develop generative AI – products that generate convincing text, image and audio from simple prompts – has intensified as Silicon Valley’s biggest companies battle for supremacy after the release of OpenAI’s ChatGPT in November last year.

After the sensational impact of that chatbot, Microsoft announced a deepening of its partnership with OpenAI in January backed by a $10bn investment.

Musk, the chief executive of Tesla and SpaceX and the owner of the X platform formerly known as Twitter, was one of OpenAI’s co-founders in 2015 but left three years later. In July, Musk launched xAI and last month the company released its first AI model, a