Elon Musk has refuted a Bloomberg report claiming his artificial intelligence startup xAI has secured $500 million toward a $1 billion funding goal.
Musk stated “This is not accurate” in response to the article on X.
Sources cited by Bloomberg said xAI is discussing a valuation of $15-20 billion, with potential adjustments in the coming weeks. Musk and investors reportedly plan to finalize terms soon, considering trading computing power for xAI equity.
Last November, Musk said X equity investors would get a 25% stake in xAI, implying they should invest 25% of their X amount. For example, a $10 billion X investment would warrant a $2.5 billion xAI investment.
Musk founded xAI in 2023 as an alternative to OpenAI after philosophical disagreements. xAI’s chatbot Grok uses X social media content.
An SEC filing showed xAI raised $865.3 million in unregistered equity in December. $134.7 million was already sold starting November 29. The securities are offered to accredited investors with resale restrictions.
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