Elon Musk Debunks Reports on xAI’s $500 Million Funding

New Delhi: In a recent twist of events, tech mogul Elon Musk has refuted claims that his artificial intelligence (AI) venture, ‘xAI,’ has secured a whopping $500 million in funding toward a lofty $1 billion goal. The report, initially surfaced by Bloomberg and citing unnamed sources, suggested that xAI was actively in talks with investors for the substantial funding.

However, Musk took to the virtual stage, dismissing the report and stating, “This is fake news from Bloomberg,” in response to a user sharing the article on X.

Bloomberg’s report also hinted at xAI considering a valuation ranging between $15 billion to $20 billion, though these terms might undergo changes in the upcoming weeks. Musk, addressing the matter on X, bluntly stated, “This is simply not accurate.”

According to a filing with the US Securities and Exchange Commission (SEC), Elon Musk, the brains behind Tesla and SpaceX, has indeed raised $134.7 million for xAI. This funding has come from four undisclosed investors, with the first sale occurring on November 29. The SEC filing further outlined that xAI will entertain a minimum investment of $2 million from external backers.

Worth noting is xAI’s ‘Grok’ AI assistant, bundled with the X Premium Plus subscription at $16 per month via the web. This revelation adds an intriguing layer to the ongoing narrative surrounding Elon Musk’s ventures and the evolving landscape of artificial intelligence.

In the dynamic world of tech and finance, clarity remains essential, and Elon Musk’s swift denial sheds light on the importance of verifying information in an era inundated with data.