Flat Capital AB (publ) (“Flat”) invests approximately 11 MSEK in xAI through a so-called Special Purpose Vehicle (“SPV”). Founded in 2023 by Elon Musk, the company aims to develop and lead revolutionary AI technologies. The company announced on May 26 a $6 billion funding round with participation from Sequoia Capital, Andreessen Horowitz and Valor Equity Partners, among others. Flat’s investment is made through a SPV structure that involves administrative costs in line with market practice.
Since its founding in June 2023, xAI has launched and developed several AI models in a short time. The capital from the capital round is expected to fund infrastructure improvements, product development, build a strong organization, and accelerate research and development of future AI technologies, in order to bring xAI’s first products to market in the near future.
Flat’s investment in xAI is made through a so-called SPV, a structure that entails certain ongoing management costs as well as a profit-sharing mechanism upon realization of any profits. The costs of the SPV structure are considered to be in line with market practice and will not materially affect Flat’s overall costs. Annual running costs are estimated to be less than 0.03% of the net asset value at the time of investment.
Hanna Andreen, CEO:
“What can Elon Musk create with $6 billion and access to the world’s best AI talents? Something big, we imagine. That’s why it’s so exciting to be part of that journey and secure exposure to one of the world’s most exciting companies in AI.”
For more information and press release: https://x.ai/blog/series-b
For further information, please contact:
Hanna Andreen, CEO, hw@flatcapital.com, +46 (0) 733 53 44 66
Antonio Melani, CFO, am@flatcapital.com,+46 (0) 72 221 81 32
Certified Adviser:
Flat Capital’s Certified Adviser is Augment Partners AB, info@augment.se, +46 (0) 8 604 22 55
About Flat Capital:
Flat Capital is an investment company that focuses on growth stage companies with prominent entrepreneurs in leading positions and primarily makes investments through its network of world-class investors and entrepreneurs. The company was founded in 2013 by entrepreneurs Nina and Sebastian Siemiatkowski (founders and CEOs of Milkywire and Klarna, respectively) and is led by CEO Hanna Andreen together with an experienced board of directors. Examples of portfolio companies include Klarna, OpenAI, Instabee, Figma och DeepL. The company aims to provide long-term capital and is essentially a passive minority shareholder, while Flat Capital’s experience and network are available to the extent the entrepreneur wishes. The aim is to facilitate successful company building and enable exposure to otherwise hard-to-reach and promising companies. More information is available at www.flatcapital.com
Note: This is a non-official translation of the Swedish original text. The text has been translated using DeepL. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.