Elon Musk dismisses reports about AI company's $500 million funding as ‘fake news’
told one user the information was "simply not accurate" and called the original Bloomberg report "fake news" in reply to another. Also Read | Elon Musk looking for 25% voting share at Tesla ahead of AI, robotics growth Bloomberg had earlier reported that xAI is in discussions for a valuation ranging between $15-20 billion and that the start-up has purportedly secured $500 million in commitments from investors, aiming for a total of $1 billion. This was rejected as fake news by Musk.
It said discussions are underway, aiming for a tender offer valued between $500 million and $750 million, sources told the publication, adding that the potential share price could be approximately $95 each. Also Read | A $60 billion pay package? Musk gives Tesla board a nightmare task While xAI has not issued an official statement, Bloomberg quoted sources about the ongoing talks. The company did not respond to queries, Reuters said.
Earlier in December too, Musk had denied fundraising for xAI, despite the start-up's filing with the United States securities regulator showing it plans to raise $1 billion via equity offering. Also Read | World may have its first trillionaire in the next decade if inequality worsens. Here's a list of probables The document also noted that xAI has already raised about $135, without disclosing the names of those investors.
Musk launched xAI in July 2023, positioning it as a response to concerns about AI efforts by Big Tech. Musk has consistently criticised major tech companies for perceived excessive censorship and inadequate safety measures in their AI initiatives. His AI company aims to compete with top players in the industry, including Google, Microsoft, OpenAI and Anthropic.
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