According to Cointelegraph: Elon Musk has rebutted a report stating that his artificial intelligence (AI) company, xAI, has attracted $500 million in investment towards its $1 billion target.
In response to a user’s post on X (formerly known as Twitter), Musk labeled the Bloomberg article as inaccurate. Bloomberg's sources had indicated that the valuation of xAI is currently under negotiation and could range from $15 billion to $20 billion, with further adjustments expected in the coming weeks.
Back in November 2023, Musk hinted that equity investors in X would receive a 25% ownership stake in xAI. This essentially suggests that these investors should invest a minimum of 25% of their investment in X into xAI. For example, if they invested $10 billion in X, they are expected to invest at least $2.5 billion in xAI.
Musk founded xAI as an alternative to OpenAI following ideological disagreements. xAI’s chatbot, Grok, is powered by content from the social media platform X.
On December 5, 2023, a United States Securities and Exchange Commission filing revealed xAI's agreement for a private sale of $865.3 million in unregistered equity securities, sold to accredited investors under Rule 506(b) with resale restrictions. The document states that $134.7 million of the securities has already been sold, with the first sale taking place on November 29, 2023.