Tech entrepreneur Elon Musk, known for Tesla, SpaceX, Twitter (now X) and many more interesting companies, is looking to invest $4 billion in his new AI company xAI.
With that company he developed Grok, an AI chatbot that will compete with OpenAI’s ChatGPT, a company he was also involved with in the early days.
Investing in Musk is not for everyone
The investment round is not open to everyone. A select group of people will be given the opportunity by Elon Musk to join his new company through so-called Special Purpose Vehicles (SPVs), according to an email to potential investors intercepted by Cointelegraph.
SPV structures allow several venture capital firms and individuals to invest together through one entity.
However, they do pay a 5 percent fee, a management fee and a certain interest on those investments. So it is not cheap to take advantage of these kinds of opportunities.
In total, Musk would like to raise $3 to $4 billion at a valuation of $18 billion. The aim is to raise the funds over the next 2 to 3 weeks and first responders will be entitled to the shares.
The big goal of xAI
Musk’s xAI was founded in March 2023 in the United States. First of all, to address OpenAI’s dominance within this industry, but also to fulfill the company’s grand mission.
That mission is: “to understand the actual nature of the universe.”
In November, xAI launched its first product with Grok in the form of a competitor to AI chatbot ChatGPT. However, some people are starting to worry about the potential bubble forming within the AI industry.
“GROK IS WORTH BILLIONS?!”, Mario Nawfal writes in the above message on Twitter. He speaks of an “impressive” appreciation for the company. Somehow that makes sense, because they only started in 2023.
Apparently it is that easy for Elon Musk to raise billions of dollars. The big question for the crypto industry is of course whether Musk has anything planned for Dogecoin with his new AI company.
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Source: https://newsbit.nl/ai-bedrijf-elon-musk-zoekt-4-miljard-aan-kapitaal-om-chatgpt-te-verslaan/
