Elon Musk Disputes Reports of xAI’s $500 Million Funding
- ByStartupStory | January 22, 2024
Elon Musk has refuted claims that his artificial intelligence (AI) company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal. Responding to a user post about the Bloomberg article on the social media platform X, Musk stated, “This is simply not accurate.”
According to Bloomberg, xAI, an AI startup, is in discussions regarding a valuation ranging from $15 billion to $20 billion. However, the terms of this valuation could still change in the coming weeks, as per sources familiar with the matter. At the time of reporting, xAI had not provided a comment on the situation.
Reportedly, Musk and the investors involved are expected to finalize the terms of the deal within the next couple of weeks. Additionally, some parties are exploring the possibility of acquiring computing power alongside or instead of xAI equity shares, as detailed by Bloomberg.
This development comes after Musk’s statement last December, where he clarified that his AI company was not seeking funding. This clarification followed xAI’s filing with the U.S. securities regulator to raise up to $1 billion in an equity offering. Musk launched xAI in July last year in response to what he perceived as excessive censorship and inadequate safety measures in Big Tech’s AI endeavors.
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