Elon Musk, the renowned entrepreneur and CEO of multiple high-profile companies, has publicly denied reports claiming a significant investment in his artificial intelligence company, #xAI .
Elon Musk Disputing the Bloomberg Report
Musk's response came after a Bloomberg article suggested that xAI, Musk's AI venture, had secured $500 million of a $1 billion funding goal. The report indicated that xAI was in the midst of valuation talks, with figures ranging between $15 billion and $20 billion. However, Musk took to X (formerly Twitter) to refute these claims, simply stating, âThis is not accurate,â in response to a userâs post referencing the Bloomberg article.
Elon Musk and the Background of xAI
xAI, an AI company started by Musk in 2023, was established as an alternative to OpenAI, following Musk's philosophical disagreements with the latter. The company's chatbot, Grok, is notably powered by social media content from X. In November 2023, Musk mentioned that equity investors in X would receive a 25% ownership stake in xAI, suggesting a significant investment incentive.
Financial Movements and Speculations
Despite Musk's denial of the recent investment claims, it's known that xAI has been active in the financial domain. In December 2023, xAI filed for the private sale of $865.3 million in unregistered equity securities with the United States Securities and Exchange Commission. This filing indicated that the securities would be sold to accredited investors, with $134.7 million already sold since the initial sale on November 29, 2023.
Ongoing Negotiations and Future Prospects
The situation remains dynamic, with Musk and potential investors reportedly continuing discussions. These talks include not only the possibility of equity shares in xAI but also the acquisition of computing power, which could be a strategic move for investors and the company alike.
As the tech community watches closely, the future of xAI and its valuation remains a topic of speculation and interest, especially given Musk's track record of disruptive innovation and market impact.
