Elon Musk Refutes xAI’s $500 Million Investment Claims Amid Valuation Speculations

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Elon MuskCEO of SpaceX, Tesla and owner of X (formerly known as Twitter), publicly refused reports concerning his AI (AI) company, xAI. Recent claims made by Bloomberg suggested that xAI has secured $500 million in investor commitments toward a $1 billion funding goal. Additionally, these reports speculate that xAI is discussing a valuation in the $15 billion to $20 billion range. However, Musk dismissed these claims as inaccurate.

In response to a social media post about the Bloomberg article, Musk stated, “That’s just not right.” This rejection comes amid ongoing conversations about xAI’s valuation and its future funding goals. It is important to note that xAI was not immediately available for comment on this speculation.

The development is a significant twist in the narrative surrounding xAI, a company Musk launched last July as a counter to Big Tech’s AI initiatives, which he criticized for problems such as excessive censorship and inadequate safety measures. In December, Musk had declared that xAI was not raising funds, contradicting these recent reports. The announcement came just a day after the startup filed with the U.S. securities regulator for a capital offering of up to $1 billion.

The current discussions around xAI valuation and funding highlight the complex and often unpredictable nature of startup funding, especially in cutting-edge fields like AI. Musk’s denial of the Bloomberg report adds an element of uncertainty to ongoing conversations about the company’s value and its approach to raising capital. Some investors are reportedly considering acquiring computing power in addition to, or in some cases instead of, equity stakes in xAI.

Musk’s involvement in xAI is notable given his significant role in various technology and space research. His critique of the current state of AI and his decision to start xAI reflect a broader trend of tech entrepreneurs engaging directly in areas they believe require new approaches or solutions.

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As the situation develops, the tech and investment communities will be watching closely for any new developments regarding xAI’s valuation, investment strategy and overall leadership under Musk.

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