Elon Musk refutes $500 million funding for xAI

Musk on xAI funding: Elon Musk has refuted a report claiming that his artificial intelligence (AI) company, xAI, has secured $500 million in commitments from investors towards a $1 billion target, stating on a social media platform, "This is simply not accurate." According to sources familiar with matter, AI startup xAI is currently in discussions about a valuation ranging from $15 billion to $20 billion, though terms remain subject to potential justments in coming weeks, according to media reports. As of now, xAI has not provided a comment on situation.

Musk and investors are anticipated to finalise terms in next few weeks, with considerations underway regarding acquisition of computing power in dition to, or in some instances inste of, xAI equity shares, as per reports. Notably, in December of previous year, Musk h stated that his AI company was not seeking funds, contricting startup's filing with US securities regulator, which indicated a plan to raise up to $1 billion in an equity offering.

xAI was launched by Musk in July of preceding year as a response to AI endeavours of Big Tech, which he has criticized for perceived excessive censorship and inequate safety measures.

(With Reuters inputs)