Elon Musk refutes claims that his AI company has secured $500 million out of its $1 billion funding goal.

In a recent development, Tesla and SpaceX CEO Elon Musk has refuted claims that his artificial intelligence (AI) company, xAI, secured $500 million in commitments from investors. Responding to a Bloomberg article, Musk stated on social media, “This is simply not accurate.”

The AI startup, xAI, is currently in discussions regarding its valuation, with figures ranging between $15 billion to $20 billion, as reported by Bloomberg, citing sources familiar with the matter. While these terms are subject to change in the coming weeks, Musk and investors are anticipated to finalize the agreement.

Despite Musk’s denial, the alleged investment is said to be part of a larger fundraising goal of $1 billion for xAI. Interestingly, Musk had stated last December that the company was not actively seeking funds, contradicting the startup’s filing with the U.S. securities regulator for a potential $1 billion equity offering.

The timeline for finalizing terms is set for the next couple of weeks. Notably, some stakeholders are exploring the possibility of obtaining computing power as an alternative or addition to xAI equity shares, according to Bloomberg’s sources.

xAI, launched by Musk in July of the previous year, aims to counter the AI efforts of Big Tech companies. Musk has been vocal about his concerns regarding excessive censorship and insufficient safety measures in the AI initiatives of major technology players.

As the story unfolds, the industry awaits further clarification from xAI, which has not provided an official comment at the time of reporting. The developments in the coming weeks are anticipated to shed light on the true nature of xAI’s financial endeavors and its potential impact on the rapidly evolving landscape of artificial intelligence.