Musk denies report on his xAI secured $500 million Funding

The News:

• Musk denies report of $500 million secured for xAI
• Funding discussions still ongoing, valuation around $15-20 billion
• Potential for alternative investment arrangements involving computing power
• Contradictions between previous statements and regulatory filings raise questions about funding strategy
• xAI remains a key player in the ethical AI space

Elon Musk took to social media platform X yesterday to deny a report claiming his AI startup, xAI, had secured $500 million in funding commitments towards a $1 billion goal. Responding to a user post referencing the Bloomberg article, Musk simply stated, “This is simply not accurate.”

While denying the specific figure, Musk’s response did not dispel broader rumors of ongoing funding discussions for xAI. Sources familiar with the matter, cited by Bloomberg, suggest the company is indeed in talks with investors, aiming for a valuation between $15 billion and $20 billion. Terms are reportedly still under negotiation, with some potential investors exploring alternative arrangements such as securing computing power in exchange for equity.

This apparent shift in approach comes after Musk declared last December that xAI was not actively raising funds, seemingly contradicting a regulatory filing made just a day prior indicating plans for a $1 billion equity offering. This led to speculation about the company’s financial standing and funding strategy.

Launched in July 2023, xAI aims to develop ethical and transparent artificial intelligence, a stark contrast to Musk’s criticisms of “excessive censorship and a lack of adequate safety measures” in Big Tech’s AI efforts. With its ambitious goals and enigmatic founder, xAI remains a closely watched player in the rapidly evolving AI landscape.

Further details on the funding negotiations and xAI’s future plans are expected to emerge in the coming weeks as discussions with investors finalize. However, with Musk’s direct denial of the $500 million figure, one thing is certain: the narrative surrounding xAI’s financial picture continues to evolve, leaving observers eager to see how the story unfolds.