Elon Musk has dismissed reports of his AI startup, xAI, raising $10 billion at a staggering $200 billion valuation. Musk labeled these reports as “fake news”, asserting that xAI is not in the process of raising capital.
Earlier on Friday, CNBC reported stating that AI firm, xAI, raising $10 billion at a post-money valuation of $200 billion.
Refuting the news, Musk declared on X, “Fake news. xAI is not raising any capital right now.”
CNBC’s initial report suggested that the speculated funding would be utilized for building data centers with Nvidia (NVDA.O) and AMD (AMD.O) graphics processing units. These units are crucial for the development of next-generation AI and the recruitment of high-cost talent.
Also Read: Elon Musk’s xAI Hits Ex-Employee With Lawsuit Claiming Trade Secrets Ended Up At OpenAI
xAI has been expanding its data center capacity to develop more advanced models, with the aim to compete with OpenAI’s ChatGPT and Anthropic’s Claude.
Its supercomputer cluster in Memphis, Tennessee, known as Colossus, is regarded as the world’s largest.
The reported increase in xAI’s valuation, if true, would have significant implications for the AI industest, potentially influencing investor sentiment and market dynamics.
However, with Musk’s denial, the focus shifts back to xAI’s ongoing projects and its competition with other AI giants.
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This article Elon Musk Refutes Claims Of xAI’s $10 Billion Funding Round, Says ‘xAI Is Not Raising Any Capital Right Now’ originally appeared on Benzinga.com
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