Elon Musk Disputes Funding Reports for xAI Amid Valuation Discussions
Elon Musk has contradicted recent reports claiming that his artificial intelligence (AI) firm, xAI, has garnered $500 million from investors, refuting the accuracy of this information. Musk responded to a user’s post on the X social media platform, stating unequivocally, “This is simply not accurate.”
Valuation Talks and Potential Shifts
In light of information from Bloomberg, xAI, Musk’s AI startup launched in response to concerns about Big Tech’s AI endeavors, is presently engaged in discussions regarding a valuation ranging from $15 billion to $20 billion. However, these terms remain subject to potential alterations in the weeks to come, as Musk and investors are anticipated to finalize details. Notably, some parties involved are exploring the prospect of acquiring computing power instead of, or in addition to, xAI equity shares.
Efforts to contact xAI for a statement were fruitless at the time of reporting. It’s noteworthy that Musk had clarified last December that his AI company was not actively seeking funds, a clarification made a day after the startup filed with the U.S. securities regulator to raise up to $1 billion in an equity offering.
The unfolding developments suggest a dynamic scenario for xAI, with Musk underscoring the necessity for an alternative AI approach. This sentiment is driven by concerns such as perceived excess censorship and insufficient safety measures associated with the AI initiatives of major tech companies.
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