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 the matter, the AI startup xAI is currently in discussions about a valuation ranging from $15 billion to $20 billion, though terms remain subject to potential adjustments in the coming weeks, according to media reports. As of now, xAI has not provided a comment on the situation.

Musk and investors are anticipated to finalise terms in the next few weeks, with considerations underway regarding the acquisition of computing power in addition to, or in some instances instead of, xAI equity shares, as per reports. Notably, in December of the previous year, Musk had stated that his AI company was not seeking funds, contradicting the startup's filing with the 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 the preceding year as a response to the AI endeavours of Big Tech, which he has criticized for perceived excessive censorship and inadequate safety measures.

(With Reuters inputs)