Elon Musk’s X-linked artificial intelligence modeler xAI has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission made on Dec. 5.

XAI filed the SEC’s Form D to allow it to engage in the private sale of securities without registration. The form is used to comply with Regulation D of the Securities Act of 1933, which provides exemptions to the standard rules. On the form, Musk is listed as the executive officer and director of the business.

The xAI Form D further clarifies that the securities will be sold to accredited investors with restrictions on their resale under Rule 506(b). The form also indicated that $134.7 million in such securities have already been sold, with the first sale taking place on Nov. 29. Thus, the company is seeking to raise $1 billion.

XAI’s product, a chatbot called Grok, has not yet made its public debut, although there is a waitlist to use the prototype. In a post dated Nov. 4, its website describes Grok as “a very early beta product,” adding:

“A unique and fundamental advantage of Grok is that it has real-time knowledge of the world via the X [formerly Twitter] platform. It will also answer spicy questions that are rejected by most other AI systems.”

Musk announced the launch of xAI in July and claimed its goal was to “understand the universe.” He claimed Grok would perform better than ChatGPT and, in November, got into an online squabble over it with OpenAI (the creator of ChatGPT) co-founder and CEO Sam Altman. Musk was also a co-founder of OpenAI but left the company.