Elon Musk recently addressed claims from a Bloomberg report suggesting his AI startup, xAI, has secured $500 million from investors as part of its $1 billion funding objective, labelling the report as inaccurate. Responding to a user’s post about the article on a social media platform, Musk stated, “This is simply not accurate.”
The report by Bloomberg, which cited sources familiar with the situation, also mentioned that xAI is negotiating a valuation between $15 billion and $20 billion. However, it was noted that these terms are subject to change in the upcoming weeks. Attempts to contact xAI for a statement were unsuccessful.
According to the same Bloomberg report, Musk, along with investors, is expected to solidify the terms of the deal within the next few weeks. Some investors are reportedly considering acquiring computing power, either as an alternative to or alongside equity shares in xAI.
This development comes after Musk, in December, denied that his AI company was seeking funding, contradicting a filing made to the U.S. securities regulator for raising up to $1 billion through an equity offering. Musk established xAI in July of the previous year as a counter to what he perceives as the shortcomings of Big Tech’s AI initiatives, particularly criticizing them for over-censorship and inadequate safety measures.
