"Elon Musk Refutes Allegations of $500M Investment in xAI Amidst Valuation Discussions"

Elon Musk rebuffs claims of a $500m funding agreement for xAI during discussions of valuation. Amid ongoing valuation conversations, reports have surfaced suggesting that Musk, alongside other investors, is deliberating the procurement of computational capacity in tandem with, or as a substitute for, shares in xAI. Nevertheless, these reports were subsequently refuted by Musk who took to X - formerly known as Twitter, to reject the authenticity of the claims. Contrary to reports that xAI, Musk's AI enterprise, had secured a $500 million investment amounting to half of its $1 billion target. Musk stated categorically that the report was incorrect. Prior reports by Bloomberg cited unknown sources asserting that the startup's valuation was set to range between $15 billion and $20 billion. The final decision on this is still under deliberation and might see some changes in the upcoming weeks. In reference to similar reports in November 2023, Musk confirmed that equity shareholders in X would have a quarter ownership in xAI. Reports interpreted this to mean that these investors were being incentivized to invest a minimum of 25% of the amount they had previously invested in X into xAI. Previously in 2023, Musk launched xAI as an alternate to OpenAI, following ideological differences. The xAI chatbot, Grok, leverages content from X - formerly known as Twitter, Musk's platform, allowing it to deliver prompt and relevant responses in comparison to other chatbots. The AI modeler, xAI, previously clinched a private sale agreement of $865.3 million in unregistered equity securities, as per a disclosure made to the U.S. Securities and Exchange Commission on Dec 5, 2023. According to this xAI Form D, the securities are earmarked for sale to accredited investors, subjected to regulation under Rule 506(b) which restricts resales. The filing indicates that securities worth $134.7 million had already been sold, with its first sale completed on Nov 29, 2023, as the startup strives to reach its $1 billion goal.