Elon Musk Denies $500M Funding Report for xAI in a Twitter Storm
Tech billionaire Elon Musk recently found himself in the midst of a social media frenzy as he vehemently debunked a report by Bloomberg claiming that his artificial intelligence (AI) company ‘xAI’ had secured $500 million in funding. Musk quickly dismissed the news as fake and stated that it originated from Bloomberg.
The controversial entrepreneur took to Twitter to respond to a user who shared the article, saying, This is fake news from Bloomberg. Musk’s denial sheds doubt on the accuracy of the report, which had cited undisclosed sources. Despite the uncertainty, Bloomberg mentioned that xAI is apparently considering a valuation between $15 billion to $20 billion, although this may change in the coming weeks.
In a separate post on Twitter, Musk emphasized the inaccuracy of the report, asserting that it was simply not true. According to a filing with the US Securities and Exchange Commission (SEC), Musk has thus far raised $134.7 million for xAI. These funds were provided by four unnamed investors, with the first sale occurring on November 29. The SEC filing noted that xAI will only accept a minimum of $2 million from external investors.
xAI’s main offering, the ‘Grok’ AI assistant, is made available to users as part of X Premium Plus, a subscription-based service priced at $16 per month via the web. However, it remains to be seen how the funding situation will develop for xAI, given Musk’s denial and the conflicting reports from Bloomberg.
Despite Musk’s strong reaction, it is important to note that different perspectives exist on this matter. Bloomberg, a reputable news outlet, claimed to have sources close to the situation. Meanwhile, Musk’s statement on Twitter contradicts their report. As the situation unfolds, both sides will likely continue to present their respective arguments.
In conclusion, Elon Musk’s swift dismissal of the report claiming xAI’s $500 million funding has set the internet abuzz. The question of whether xAI indeed secured this substantial investment remains uncertain, as Musk vehemently denies its authenticity. As industry observers eagerly await further developments, it is clear that only time will reveal the truth behind xAI’s funding status.
