Elon Musk has refuted a Bloomberg report claiming his artificial intelligence startup xAI has secured $500 million toward a $1 billion funding goal.

Musk stated “This is not accurate” in response to the article on X.

Sources cited by Bloomberg said xAI is discussing a valuation of $15-20 billion, with potential adjustments in coming weeks. Musk and investors reportedly plan to finalize terms soon, considering trading computing power for xAI equity.

Last November, Musk said X equity investors would get a 25% stake in xAI, implying they should invest 25% of their X amount. For example, a $10 billion X investment would warrant a $2.5 billion xAI investment.

Musk founded xAI in 2023 as an alternative to OpenAI after philosophical disagreements. xAI’s chatbot Grok uses X social media content.

An SEC filing showed xAI raised $865.3 million in unregistered equity in December. $134.7 million was already sold starting November 29. The securities are offered to accredited investors with resale restrictions.

The news you see on this site are collected from reliable news sites. Therefore, original sources are used as much as possible.