Tesla Inc. CEO Elon Musk‘s synthetic intelligence startup, xAI, has reportedly secured $500 million in funding commitments from traders. Nonetheless, the billionaire founder rapidly debunked the information on his social media platform X.
What Occurred: Musk’s AI startup can also be looking for a possible valuation within the vary of $15 billion to $20 billion, though the phrases are but to be finalized, in accordance with a Bloomberg report on Thursday.
xAI, launched by Musk final yr as an alternative choice to Microsoft-backed OpenAI, has developed a chatbot named Grok. The chatbot makes use of social media posts from X, giving it entry to newer information for its responses in comparison with its rivals.
Traders who beforehand backed Musk’s $44 billion takeover of Twitter, together with Larry Ellison, Sequoia Capital, Andreessen Horowitz, Constancy Administration & Analysis Co., and Saudi Prince Alwaleed bin Talal, are additionally anticipated to spend money on xAI.
Some traders are stated to be contemplating the potential for acquiring computing energy along with, or in some circumstances as an alternative of, xAI fairness shares.
Musk, nevertheless, has denied the report, calling it “faux information.”
See Additionally: Elon Musk’s X Is Now Rolling Out Audio And Video Calls On Android
Why It Issues: This funding drive comes after Musk contradicted reports in December that xAI was looking for $1 billion in fairness funding. Regardless of this, the agency had already secured almost $135 million from 4 traders on the time, according to a U.S. Securities and Alternate Fee (SEC) submitting.
In the identical month, Grok was made available to X Premium+ subscribers following testing with a restricted set of customers. This rollout was applied on a first-come, first-serve foundation.
Nonetheless, xAI confronted controversy when Grok was accused of copying OpenAI’s codebase and mimicking the responses of ChatGPT. This has added a layer of complexity to xAI’s standing within the aggressive AI panorama.
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Grok Maker xAI Reportedly Secures $500M Of Its $1B Funding Purpose: Elon Musk Denies It, Calls It ‘Faux Information’ www.benzinga.com 2024-01-20 04:53:16
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