Elon Musk’s Announcement
Elon Musk, on Friday, clarified that his artificial intelligence firm, xAI, is not currently seeking funding from investors.
This clarification was made in response to a media report earlier in the day that suggested xAI was aiming to raise up to $6 billion.
Musk’s Confirmation on Social Media
Musk explicitly mentioned on X (formerly known as Twitter) that xAI is not in the process of raising capital.
He further stated that he has not had any discussions with anyone regarding funding.
The Financial Times Report
The Financial Times had reported that xAI was in talks to raise funding with a valuation of $20 billion.
The report indicated that xAI is engaged in discussions with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East for potential funding.
Funding Landscape in the AI Industry
The AI industry has been experiencing increased funding activities, with several investors making significant investments in startups focused on artificial intelligence.
Silicon Valley has shown considerable interest in AI over the past year.
Previous Denial by Musk
Elon Musk had previously denied reports that xAI had secured $500 million in commitments from investors toward a $1 billion funding goal.
Musk’s Involvement in AI and Robotics
Elon Musk has been vocal about his commitment to building safer AI.
He co-founded OpenAI in 2015 but stepped down from its board in 2018.
Last year, xAI launched “Grok,” a chatbot that competes with OpenAI’s ChatGPT.
Concerns About AI Development
Musk has expressed concerns about the development of AI and robotics outside of Tesla, unless he gains more voting control at the electric-vehicle maker.
AI Industry Trends
The AI industry, fueled by the popularity of platforms like ChatGPT, has stood out as a bright spot in a subdued startup funding environment.
Other AI startups, such as Anthropic and Microsoft-backed Inflection AI, have also successfully raised funds in recent months.
Lack of Response to Media Requests
Musk’s office did not respond to a Reuters request for comment regarding the latest reports on xAI’s funding talks.