Elon Musk Refutes Claims of His AI Company Securing $500 Million, Targets $1 Billion Funding Goal

Tesla CEO dismisses reports, setting the record straight on funding status for his artificial intelligence venture

Elon Musk has refuted recent claims that his artificial intelligence (AI) company, xAI, has secured $500 million from investors toward its $1 billion funding goal. Responding to a user post on social media platform X, Musk stated, “This is simply not accurate,” challenging the accuracy of a Bloomberg article.

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According to Bloomberg’s report, xAI, the AI startup, is currently in discussions about a valuation ranging between $15 billion to $20 billion. However, terms of the valuation are subject to potential changes in the coming weeks. Attempts to reach xAI for comment were unsuccessful at the time of reporting.

Musk and investors are anticipated to finalize the funding terms within the next few weeks. Notably, some stakeholders are exploring the possibility of obtaining computing power in addition to or instead of equity shares in xAI, as per Bloomberg’s sources.

Contrary to recent reports, last December, Musk declared that his AI company was not actively seeking funds. This clarification came a day after xAI filed with the U.S. securities regulator to raise up to $1 billion in an equity offering.

Elon Musk initiated xAI in July of the previous year as a response to his criticisms of Big Tech’s AI initiatives. Musk has expressed concerns about excessive censorship and inadequate safety measures in the AI efforts of major technology companies.