Elon Musk Refutes xAI's $500 Million Investment Claims Amid Valuation Speculations - Blockchain.News

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

Elon Musk denies Bloomberg's claims of his AI company, xAI, securing $500 million toward a $1 billion goal and discusses a $15-20 billion valuation. Musk refutes these reports as inaccurate.

  • Jan 22, 2024 03:10
Elon Musk Refutes xAI's $500 Million Investment Claims Amid Valuation Speculations

Elon Musk, the CEO of SpaceX, Tesla, and owner of X (formerly known as Twitter), has publicly denied reports regarding his artificial intelligence (AI) company, xAI. Recent claims made by Bloomberg suggested that xAI had secured $500 million in investor commitments towards a $1 billion funding goal. Furthermore, these reports speculated that xAI was discussing a valuation in the range of $15 billion to $20 billion. However, Musk has refuted these claims as inaccurate.

In a response to a social media post about the Bloomberg article, Musk stated, "This is simply not accurate." This denial comes amid ongoing talks about xAI's valuation and its future funding goals. It's important to note that xAI has not been immediately available for comment regarding these speculations.

This development is a significant turn in the narrative around xAI, a company Musk launched in July last year as a counter to Big Tech's AI initiatives, which he has criticized for issues like excessive censorship and inadequate safety measures. In December, Musk had declared that xAI was not raising funds, contradicting these recent reports. This statement came just a day after the startup filed with the U.S. securities regulator for an equity offering up to $1 billion.

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

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

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

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