Elon Musk claims that xAI, his AI business, is not seeking funding

Elon Musk claims that xAI, his AI business, is not seeking funding

Elon Musk claims that xAI, his AI business, is not seeking funding

In response to a story published last week, Musk said xAI has received $500 million in pledges from investors toward its $1 billion financing goal.

In 2015, Musk co-founded OpenAI; however, in 2018, he left the company's board.

In response to a media story earlier in the day about the startup's attempt to raise up to $6 billion, Elon Musk said on Friday that his artificial intelligence company, xAI, is not in negotiations with investors to gain financial backing.

In a post on XAI, Musk said, "XAI is not raising capital as well as have not had any conversations alongside anyone about it."

According to a Financial Times story, xAI was in discussions to secure $20 billion in finance.

The FT story, which cited various individuals familiar with the situation, claims that the business is in negotiations with family offices in Hong Kong and is pursuing sovereign wealth funds in the Middle East.

With so many investors writing large checks to start-ups hoping to capitalize on what has drawn Silicon Valley's attention in the last year, the race to develop AI is becoming hotter.

In response to a Reuters request for comment, Musk's office remained silent.

In response to a story published last week, Musk said xAI has received $500 million in pledges from investors toward its $1 billion financing goal.

The CEO of Tesla has expressed his intentions to develop safer AI in public. In 2015, Musk co-founded OpenAI; however, in 2018, he left the company's board.

"Grok," a chatbot developed by xAI last year, is a rival to OpenAI's ChatGPT.

Musk also issued a warning earlier this month about creating robots and AI outside of Tesla if he doesn't get greater voting power at the electric car manufacturer. He said that until he had 25% vote power, he would feel uneasy appointing Tesla as an AI leader.

The AI sector has been a rare bright light in the gloomy start-up financing climate because of ChatGPIT's popularity.

In recent months, Anthropic and Microsoft-backed Inflection AI have also received capital.