Billionaire ElonMuskDenied the rumors about his artificial intelligence (AI) companyxACompleted 50%'s $1 billionFinancingTarget reports.
"This is simply not accurate," Musk wrote on X, formerly Twitter, in response to a post by a user on the platform citing the Bloomberg News report.
xAI is discussing a valuation of between $15 billion and $20 billion, Bloomberg News reported, citing people familiar with the matter, though the terms could change in the coming weeks.
Musk and investors plan to finalize investment terms in the coming weeks, the report said, and some parties are evaluating whether to gain access to computing power in addition to, or in some cases instead of, a stake in xAI.
In December, xAI filed a document with the U.S. Securities and Exchange Commission (SEC) indicating that it was looking to raise $1 billion through an equity offering, of which more than $134 million had already been sold. The document noted that xAI “has entered into binding and enforceable agreements to purchase and sell approximately $865,000,000 of outstanding outstanding securities.”
Musk also responded to reports of funding by saying, “We are not raising money right now,” in response to a post about xAI wanting to compete with OpenAI and Anthropic.
xAI was founded by Musk in July 2021, and he announced the launch of the Grok chatbot in November. Musk initially created xAI as a response to the AI programs of large technology companies, which he criticized for excessive scrutiny and insufficient safety measures. Musk co-founded ChatGPT's OpenAI in 2015 and resigned from its board in 2018. At the time, he expressed his desire to create a company that pursuesmaximumThe AI of truth tries to understand the nature of the universe.
xAI is distinct from the X social media platform, though the two companies work closely together and xAI also has a partnership with Tesla.
xAI announced the launch of a preview version of its "Grok" chatbot in November last year, designed to compete with OpenAI's ChatGPT and Google's Bard. The company said that Grok's design was inspired by The Hitchhiker's Guide to the Galaxy, so it is designed to answer almost any question, even asking what questions to ask! Grok is designed to answer questions with some wit and a bit of a rebellious personality, so don't use it if you hate humor! The company made the Grok chatbot available to X Premium+ subscribers in the United States in December last year, and in the following weeks, it rolled out the AI tool to subscribers living in more than a dozen countries, including Australia, Canada, India, etc.