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Elon Musk dismisses reports about AI company's $500 million funding as ‘fake news’ | Mint

Jan 21, 2024 - livemint.com
Elon Musk has refuted reports about his AI start-up, xAI, securing $500 million in funding, labeling them as fake news. Despite Bloomberg's report that xAI is in talks for a valuation between $15-20 billion and has secured $500 million from investors, Musk denied these claims on social media site X. The report also suggested that xAI is aiming for a total of $1 billion in funding and a tender offer valued between $500 million and $750 million.

The start-up, launched by Musk in July 2023, has not issued an official statement regarding these reports. However, it was noted that xAI has already raised about $135 million, without disclosing the names of the investors. Despite Musk's denial of fundraising for xAI in December, the start-up's filing with the US securities regulator shows plans to raise $1 billion via an equity offering.

Key takeaways:

  • Tech billionaire Elon Musk has denied reports of a $500 million funding plan for his AI start-up, xAI, dismissing them as fake news on social media site X.
  • Bloomberg reported that xAI is in discussions for a valuation between $15-20 billion and has secured $500 million in commitments from investors, aiming for a total of $1 billion.
  • Despite Musk's denial, xAI's filing with the United States securities regulator shows plans to raise $1 billion via equity offering.
  • xAI, launched by Musk in July 2023, aims to compete with major tech companies like Google, Microsoft, OpenAI and Anthropic in the AI industry.
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