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Elon Musk's xAI Refutes $500 Million Capital Raise Report

Elon Musk disputes a report that claims xAI, his AI business, has raised $500 million in capital. This past weekend, Elon Musk refuted a report claiming that his artificial intelligence business, xAI Corp., has raised $500 million of the $1 billion needed to fund the project. The billionaire businessman (pictured) responded to a previous tweet citing a Bloomberg article on funding by writing, 'This is simply not accurate,' on the social media platform X, which was formerly Twitter.

xAI is reportedly debating the parameters of a capital round that may place the startup's valuation between $15 billion and $20 billion, according to a report from Bloomberg. It quoted sources with knowledge of the situation before stating that the parameters of the agreement might alter in the upcoming weeks.

According to a document xAI submitted to the U.S. Securities and Exchange Commission last month, the company hopes to raise $1 billion through an equity offering. Equity valued at $134 million had already been sold, according to the document. A “binding and enforceable agreement for the purchase and sale” of the $865 million in equity that xAI still needs to sell has reportedly already been signed, according to the document.

Additionally, Musk refuted the December allegation, stating that the business was 'not raising money right now' in a previous X post. The chief executive of SpaceX Corp. and Tesla Inc. announced last summer that xAI was being created in response to the growing trend of generative AI, which has taken the attention of the majority of the largest technological businesses in the world.