- Elon Musk denied a report that his AI company xAI secured $500 million of a $1 billion funding goal, though talks are ongoing about xAI’s valuation and potential investment
- According to Bloomberg sources, xAI is discussing a $15-20 billion valuation with potential adjustments in coming weeks as Musk and investors settle terms
- Musk started xAI in 2022 after disagreements with OpenAI; xAI’s chatbot Grok uses Twitter data and the company secured some equity funding deals in late 2022
Elon Musk has denied the accuracy of a report claiming his artificial intelligence company xAI secured $500 million of a $1 billion funding goal from investors. Musk responded to a user’s post stating “This is not accurate,” referring to a Bloomberg article reporting the investment.
Details of the Reported Investment
According to sources cited by Bloomberg, xAI is in talks about a valuation ranging from $15 billion to $20 billion, with potential adjustments in the coming weeks. Musk and investors reportedly plan to settle terms in the coming weeks, with ongoing discussions about the possibility of obtaining computing power alongside or instead of xAI equity shares.
In November 2022, Musk mentioned that equity investors in Twitter would get a 25% ownership stake in xAI. This implies that these investors are encouraged to invest at least 25% of the amount they invested in Twitter into xAI, according to Bloomberg.
Musk’s History with xAI
In 2022, Musk started xAI as an alternative to OpenAI, where he had philosophical disagreements. xAI’s chatbot Grok is powered by social media content from Twitter.
The AI modeler xAI secured a deal for the private sale of $8.653 million in unregistered equity securities, according to a December 2022 filing with the U.S. Securities and Exchange Commission. The filing notes that $1.347 million of securities has already been sold.
While the details remain unclear, it appears ongoing talks are happening regarding xAI’s valuation and potential investment. Musk denies the reported $500 million figure, but the future of xAI funding still seems uncertain.
