Elon Musk, the CEO of xAI, has denied reports that his artificial intelligence company secured $500 million in commitments from investors toward a $1 billion goal. The reports claimed that xAI was discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks. Musk called the reports “fake news” and said that they were inaccurate.
Background
Two days ago, there was a report from Bloomberg that claimed that Elon Musk’s artificial intelligence company, xAI, has secured $500 million in commitments from investors. The report says that this funding is toward a $1 billion goal. The report also claims that xAI is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks. However, Bloomberg did not reveal the source of the information but simply said it is from “…people with knowledge of the talks”. The sources did not want to reveal their identity because they were not authorized to speak publicly about the investment.
Elon Musk’s Response
X News Daily, a news platform took to X (formerly Twitter) to share the news of xAI’s alleged funding. However, in response to the tweet from X News Daily, Elon Musk said, “This is fake news from Bloomberg”
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xAI’s Funding Goals
xAI is an artificial intelligence company founded by Elon Musk. The company aims to develop generative AI products that generate convincing text and images. The AI tool will also generate audio from simple prompts. Musk’s xAI has already raised some funds from investors. The company is seeking to raise a total of $1 billion in equity financing. The company filed with the US Securities and Exchange Commission to raise $1 billion in equity offering.
In early December last year, xAI submitted documents to the U.S. securities regulator and planned to raise $1 billion in equity financing. According to documents dated December 5, the company has raised $134.7 million through equity financing, bringing the total financing amount to $1 billion. Musk has been vocal about his plans to build safer artificial intelligence. He said at a Twitter Spaces event earlier this year that xAI would not directly program ethics into AI, but would instead seek to create an “extremely curious” AI. xAI’s artificial intelligence product is called Grok. Musk believes that compared to OpenAI’s ChatGPT, Google’s Bard and Microsoft’s Bing Chat, the biggest difference between Grok is its sense of humour. However, Musk tweeted in December last year that his company was not raising funds.
Conclusion
Elon Musk has denied reports that his artificial intelligence company, xAI, secured $500 million in funding. The reports claimed that xAI was discussing a valuation of $15 billion to $20 billion. Although it says the terms could still change in the coming weeks. However, Elon Musk called the reports “fake news” and said that they were inaccurate. If the CEO of the company has said it is fake news, then it is fake news. There is no other authoritative source that will give you a better perspective.