Despite these developments, Musk has dismissed Bloomberg's reports as "fake news," without specifying the inaccuracies. Last year, Musk launched xAI as a separate venture from OpenAI, a company he co-founded but later left due to disagreements over monetization. The startup's first product, an AI chatbot named Grok, leverages social media content from another Musk-owned platform, setting it apart from competitors.
Key takeaways:
- Elon Musk's AI venture, xAI, has secured investor commitments totaling $500 million, aiming to reach a funding target of $1 billion. The company's valuation is currently estimated to be between $15 billion and $20 billion.
- Notable investors include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co., and Saudi Prince Alwaleed bin Talal. These investors are expected to hold a 25% stake in xAI.
- xAI is offering equity investors the opportunity to allocate at least 25% of their initial investment in X toward xAI. Some investors are considering the acquisition of computing power as an alternative or supplementary investment option.
- Elon Musk has dismissed Bloomberg’s reports as 'fake news', without specifying which part of the reports he disputes. Musk's new venture, xAI, is a departure from OpenAI, a company he co-founded but left due to differing views on monetizing the technology.