X.Ai's Billion-Dollar Fundraise: What's Really Going On?
X.Ai's sudden $135M fundraising is the tech world's equivalent of a surprise hit album dropping overnight, sparking buzz and mystery in equal measure
Today, news broke that X.Ai (Elon Musk’s latest AI project) has raised $135M from investors based on a $1B valuation and a $2M minimum investment.
This is according to SEC Form D filing – as of yesterday. This form notifies regulators about key details regarding private offerings of securities.
But hold on a second…
Elon Musk, the man behind the machine, went to X (formerly Twitter) to say they are not raising money right now?
What's the truth?
I think the fundraise is legit.
For the past six months we have had closed door conversations with other VC’s which confirmed Elon’s plans for X.Ai.
We had expected and been prepared for a raise to come out in 2024.
Hearing the news today comes as a surprise.
If you also consider Elon’s track record with the SEC, his public statements have been suspect to say the least. (Does “funding secured” ring any bells?)
My guess is this was not the way Elon wanted to break the news.
We don't know yet, but let me tell you something: Elon fully intends on competing in AI and has an experienced edge when taking on the impossible.
Whether Tuttle Ventures is able to participate in a private offering is still TBD.
Elon is notorious for being highly selective.
Obviously, the opportunity is huge.
The AI industry has been cutthroat for its rapid developments and intense competition.
Jasper (formerly Jarvis), which I started using as a Beta user, is all but a footnote in the current consumer race.
The ongoing narrative involving Open AI and Sam Altman illustrates the enduring influence of charismatic leaders in the emerging technology. Elon stepping into the AI ring is significant.
X.Ai's fundraising news, whether confirmed or denied, highlights the continuous and dynamic nature of competition and innovation in this sector.
We will continue to share relevant updates as further info comes to light.
Thank you for reading and I am grateful and humbled to be able to learn, grow, and invest alongside you at Tuttle Ventures.
Vision, Courage and Patience leads to successful investing.
Darin Tuttle, CFA
NOTE - This is not investment advice. Do your own due diligence. I make no representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information contained in this report. Any assumptions, opinions and estimates expressed in this report constitute my judgment as of the date thereof and is subject to change without notice. Any projections contained in the report are based on a number of assumptions as to market conditions. There is no guarantee that projected outcomes will be achieved. Unless there is a signed Investment Management or Financial Planning Agreement by both parties, Tuttle Ventures is not acting as your financial advisor or in any fiduciary capacity.