Elon Musk recently refuted claims made in a Bloomberg article stating that his artificial intelligence (AI) firm, xAI, had secured $500 million from investors towards a $1 billion funding goal.
Responding to a social media post discussing the Bloomberg report, Musk declared, “This is simply not accurate.”
According to Bloomberg’s sources, the AI startup xAI is currently in discussions regarding a potential valuation ranging from $15 billion to $20 billion.
However, these terms may still undergo adjustments in the coming weeks. As of now, xAI has not officially commented on the matter.
Investors and Musk are anticipated to finalize the deal’s terms within the next couple of weeks.
Interestingly, some parties are contemplating the possibility of acquiring computing power in addition to, or even instead of, equity shares in xAI, as per Bloomberg’s report.
This recent development contradicts Musk’s statement from December, when he asserted that his AI company was not in the process of raising funds.
This assertion came a day after xAI had filed with the U.S. securities regulator to raise up to $1 billion through an equity offering.
Musk launched xAI in July of the preceding year as a response to the AI initiatives undertaken by major tech companies.
He had been critical of these companies for what he perceived as excessive censorship and a lack of sufficient safety measures in their AI systems.
In light of these recent events, the funding situation of xAI remains uncertain.
While reports have suggested significant investment commitments and discussions of a substantial valuation, Elon Musk has firmly denied the accuracy of such claims.
The outcome of the ongoing negotiations between Musk, investors, and the potential integration of computing power as an alternative to equity shares will likely shape the future direction of xAI.