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Musk denies report his AI company secured $500 million toward $1 billion funding goal

Elon Musk disputes reports of xAI securing $500 million, clarifying that the AI startup is not close to its $1 billion funding goal. Despite Bloomberg's mention of a $15-$20 billion valuation, xAI remains tight-lipped, leaving investors and the tech community intrigued. Musk and investors are set to finalize terms in the coming weeks, with considerations for alternative investments such as computing power instead of equity shares.
Elon Musk

Elon Musk has said a report that his artificial intelligence (AI) company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal is inaccurate.

"This is simply not accurate," he said in a reply to a user post about the Bloomberg article on social media platform X.

The artificial intelligence (AI) startup xAI is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks, Bloomberg reported, citing people familiar with the matter.

xAI could not immediately be reached for comment.

Musk and investors are expected to finalise terms in the next couple of weeks, and some parties are evaluating whether they can get computing power in addition to, or in some cases instead of, xAI equity shares, Bloomberg reported.

Last December, Musk said his artificial intelligence company was not raising funds, a day after the startup filed with the US securities regulator to raise up to $1 billion in an equity offering.

Musk launched xAI in July last year in response to Big Tech's AI efforts, which he has criticized for excessive censorship and a lack of adequate safety measures.

—Reuters

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