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Musk’s AI startup xAI secures $500M toward $1B funding goal



An earlier report by Bloomberg revealed that Elon Musk’s artificial intelligence company, xAI, successfully secured $500 million from investors on its path to a $1 billion funding goal.

Bloomberg noted that xAI is currently in discussions regarding a valuation ranging from $15 billion to $20 billion. If it pulls through, this should make it be in the valuation league of OpenAI and other top AI firms.

The media house added that while finalization of terms between Musk and investors is anticipated within the next few weeks, some parties are exploring the possibility of obtaining computing power in addition to or, in some cases, instead of xAI equity shares.

Hours later, it was reported that Elon Musk refuted the claims that his artificial intelligence (AI) company, xAI, has secured $500 million in commitments from investors towards a $1 billion funding goal. Furthermore, it was stated that the startup has not provided an official comment on the matter.

xAI is an artificial intelligence (AI) company founded by Elon Musk in March 2023. The company’s purpose is to “understand the true nature of the universe,” according to its website. 

xAI seeks to develop AI technology that can solve scientific mysteries and compete with companies like OpenAI, Google, and Anthropic, which are behind leading chatbots like ChatGPT, Bard, and Claude. 

The company has raised $134.7 million in securities so far and is seeking to raise up to $1 billion in equity investments. 

xAI’s Grok AI chatbot pulls real-time information from X (formerly Twitter) to power some of its responses, but it’s currently only available in early access to X’s Premium Plus subscribers. 

Despite the close ties between Grok and X, xAI is separate from X Corp., X’s parent company. The SEC filing notes xAI will only accept a minimum of $2 million from outside investors. 

The company’s advisor is listed as Dan Hendrycks, executive director of the Center for AI Safety, a San Francisco-based nonprofit that published a letter in May.

Elon Musk has been vocal about his concerns regarding artificial intelligence (AI) and its potential impact on humanity. He has warned that AI could pose an existential threat to humanity and has called for regulation to ensure its safe development.

Musk has also founded several companies, including Neuralink, which aims to develop brain-machine interfaces to enhance human intelligence and protect against the potential risks of AI. 

Read also; NEWSArbitrum explores $90M incentives program to boost development

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